February 17, 2017

DNCA's weekly market outlook by Igor de Maack

Management comment

The economic statistics in the United States are still demonstrating a fine dynamic. Following a good Empire Manufacturing index, the Fed Philadelphia index came out at its highest for 34 years (43.3). The acceleration of the US cycle, driven by industry, seems to be confirmed on a daily basis, which the US stock market also salutes on a daily basis despite the slapstick of Donald Trump and the rumours of collusion between his campaign team and Russia.

In Europe, political questions continued to dissuade investors from looking at the economy and investing! Institutional changes and the Eurozone policy are still giving rise to the same questions...since 2011. Whereas unemployment is once again down in France and the overall data (distribution of credit, vehicle registrations, etc.) is very positive, the volumes flowing into European equities remain anaemic. The risk of a folkloric French election, with the risk of a government with no economic good sense, is paralysing France's near neighbours and also their savers. Certain of them must genuinely be wondering how the country that gave birth to Louis XIV, the philosophers of the Age of Enlightenment, Napoleon and Charles de Gaulle today appears so fragile, so divided, so schizophrenic and so close to absurd economic theses that have already produced calamitous results (Argentina and Venezuela).

The worst is however never guaranteed, but it is indeed the politicians who will influence the financial markets this year rather than the central banks.

Igor de Maack, Fund manager and spokesperson at DNCA. This article was finalised in February 17th, 2017.

This promotional document is a simplified presentation and does not constitute a subscription offer or an investment recommendation. No part of this document may be reproduced, published or distributed without prior approval from the investment management company.

DNCA Investments is a trademark held by DNCA Finance

The economic statistics in the United States are still demonstrating a fine dynamic. Following a good Empire Manufacturing index, the Fed Philadelphia index came out at its highest for 34 years (43.3). The acceleration of the US cycle, driven by industry, seems to be confirmed on a daily basis, which the US stock market also salutes on a daily...
2017-02-17