April 07, 2017

DNCA's weekly market outlook by Igor de Maack

Management comment

The weeks pass by in a climate of relative global economic confidence and bullish financial markets in terms of year-to-date performances. The dollar has reversed its recent trend, appreciating against the euro towards the 1.05 level. In Europe, business and political leaders are on tenterhooks ahead of the French presidential election. Although it is currently difficult to navigate through the sea of misinformation, the gap between the various candidates appears to be narrowing. Between voting intentions and certitudes, polling experts and other observers are presenting their final analyses before the all-important first round of voting on 23 April.

The hesitant, somewhat chaotic start made by Donald Trump and his administration, coupled with the Brexit being triggered without conviction, demonstrates (but was this really necessary?) that the diehard promises made by populist candidates sometimes have little chance of being implemented, or that they can lead to more harmful consequences than expected.

For the time being, the economic recovery continues in Europe. The unemployment rate is falling and corporate earnings momentum can be seen to be improving. Excluding a major political shock, non-domestic investors should progressively return to Europe, despite the continent’s all-too-familiar shortfalls.

Igor de Maack, Fund manager and spokesperson at DNCA. This article was finalised in April 7th, 2017.

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The weeks pass by in a climate of relative global economic confidence and bullish financial markets in terms of year-to-date performances. The dollar has reversed its recent trend, appreciating against the euro towards the 1.05 level. In Europe, business and political leaders are on tenterhooks ahead of the French presidential election. Although...
2017-04-07