MORNING BID EUROPE-A far-right worry for Brussels in Austria

* A look at the day ahead from EMEA Economics and Politics Desk Chief Jeremy Gaunt and EMEA Markets Editor Mike Dolan. Views expressed are their own.

LONDON, Aug 24 (Reuters) - After a summer hiatus, Austria's presidential run-off is getting underway.

Yesterday, former Greens leader Alexander Van der Bellen focused his campaign on the fact that he is pro-EU and that (he says) European Union leaders want him to win. Today, the campaign posters for anti-immigration Freedom Party candidate Norbert Hofer will be unveiled.

Hofer is a eurosceptic and has said that in some cases Austria should consider leaving the EU. This is exactly the kind of noise that has German Chancellor Angela Merkel on a tour to meet other EU leaders this week. She (Munich: SOQ.MU - news) is trying to shore up things in the Baltics today before heading off south to Prague.

The job of president of Austria is not, in itself, important. But very few of Europe's elite would want to see a far-rightist like Hofer win. Van der Bellen is probably right that there was a "sigh of relief" from Brussels when he won the previous run-off, only have to have it overturned.

Meanwhile the real EU exit, Britain's, continues to haunt, even if the true political and economic impact is probably some way off. Olli Rehn, Finland's economy minister who was the EU's top economic official in the midst of the euro zone debt crisis, is speaking on the subject in Helsinki, and Norway's industry minister is checking in with local businesses.

And Merkel will be talking about Brexit to her counterparts in depth, of course. Would she be on this cross Europe jaunt if Britain had voted "Remain"?

MARKETS (AS OF 0645 GMT)

The numbers are starting to paint a fairly clear picture of the immediate economic impact of the Brexit vote in the UK, Europe and the elsewhere -- mainly that there has been surprisingly little damage at all to date, especially outside the UK itself but also within. A whole stream of reports on Tuesday pointed to a fairly resilient response to the referendum during July and August, with even areas touted as most exposed, such as the UK housing market, holding up well. The UK real estate stock index has returned to its highest level since the vote as housebuilder Persimmon (Other OTC: PSMMF - news) 's stock rallied on its report of a jump in interest from new buyers since the referendum. The UK's CBI said manufacturing export orders rose to their highest level in two years since the vote. Euro zone flash PMIs for August showed barely a flinch, with French readings surprisingly robust given the torrid summer there. And US new home sales rose to their highest in 9 years last month too.

So, Brexit? What Brexit? To the extent that Brexit fears drove policy and market thinking for the past couple of months, then there may well be a big reappraisal. There may well be economic turbulence to come, but it's very hard to detect anything like a shock so far. All of which plays into world markets in several ways. It makes the record outstanding short positions in sterling very uncomfortable for a start, with the pound testing levels above $1.32 on Tuesday before falling back. It suggests to many, including JPMorgan (LSE: JPIU.L - news) yesterday, that further ECB easing is off the agenda for now. And it ups the ante for the Fed, where chair Yellen's speech at Jackson Hole on Friday is likely to tilt hawkish again in line with other recent Fed noises. The risk at least of a bombshell there is already seeing market adjust -- nowhere clearer than in emerging markets, where MSCI (NYSE: MSCI - news) 's main stock index is now off 2.5 percent from the mid-August peaks.

Elsewhere, Brent crude oil prices continue to struggle for air above $50, with skepticism about talk of an OPEC output freeze combining with hefty inventory data and the firmer dollar. Brent is down as low as $49.22 this morning again. Wall St and the ViX were flat overnight.

Upcoming events/data/themes for market reports on Wednesday:

- European corporate events: Carillion (Other OTC: CIOIF - news) , Polymetal. WPP (LSE: WPP.L - news) , Glencore (Xetra: A1JAGV - news) earnings

- German Q2 detailed GDP

- Germany sells five-year bonds

- UK July BBA mortgage approvals

- Iceland, Paraguay rate decisions

- U.S (Other OTC: UBGXF - news) . Aug Markit flash manufacturing PMI

- U.S. July existing home sales

- U.S. sells 5-year notes (Editing by Sonya Hepinstall)