Europe Experiences 'Relief Rally' After the Dutch Election

The month of March ushered in a subtle changing of the guard, with the investment community shifting focus from the ‘Trump bump’ to an event-driven relief in Europe

Dan Kemp 6 April, 2017 | 8:30AM
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The month of March ushered in a subtle changing of the guard, with the investment community shifting focus from the ‘Trump bump’ to an event-driven relief in Europe. This relief followed the much-talked about Dutch election, which overshadowed a series of other major events, including the official triggering of Brexit.

The Dutch election was the first of three key elections in Europe through 2017 and thus had added importance as a proxy for the French elections in April and May and German election likely to take place in October. While anti-EU populist Geert Wilders came second in the March 15 elections, winning 20 seats, it was not enough to derail a coalition being formed between centrist parties.

In a European context, this was arguably the biggest development for the month, which saw European equities produce an exceptional ‘relief rally’. While the broad European region delivered just over 4% in US dollars, the real winners were in Spain and Italy which delivered 10% and 9% respectively.

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About Author

Dan Kemp

Dan Kemp  is Chief Investment Officer, Morningstar Investment Management EMEA