European Equities Offer Profit Despite Politics

Concerned by the political backdrop of Brexit, Catalonia and the German coalition? Don't be, says Threadneedle's Ann Steele. European equities are the place to be

Emma Wall 24 October, 2017 | 3:43PM

After the French election result in May this year, European stocks rose in value. The sigh of relief from markets that Marine Le Pen had not been successful in her Presidential bid was almost audible. Foreign investment in European stocks rolled in from North and South American, buoying assets.

But while the Eurozone may have dodged that particular political bullet, the risks of upset are far from over. Catalonian independence looms as does Brexit – both have the ability to upset the apple cart.

Ann Steele, senior portfolio manager for Columbia Threadneedle lists populism, Donald Trump, geopolitics and terrorism as potential headwinds for European stock markets. She says that while GDP growth is positive, and earnings look good, the last time populism was this, well, popular, was just before the Second World War.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
3i Ord948.60 GBX1.17
Moncler SpA34.52 EUR0.00
Sika AG ADR24.03 USD0.00

About Author

Emma Wall  is former Senior International Editor for Morningstar

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