Market Flash: Unruffled Trading Despite Political Twists
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On the markets
Markets took a breather despite a busy week for political developments and news that was theoretically adverse. 1- The Italian election results reflected difficulties in securing a majority government and a surge in support for the two, most anti-European parties. 2- Donald Trump’s decision to introduce import duties on steel and aluminium triggered hostile reactions abroad but also within the US. Gary Cohn resigned in protest and Paul Ryan was also against the idea despite being in the Senate majority. Elsewhere, Mario Draghi’s press conference after the ECB meeting tended to reassure investors even if the bank's stance came across as a little less accommodating. Company results continued to surprise on the upside even if economic data seemed to point to Europe stabilising, admittedly at a high level. As a result, we have maintained our upbeat view on equities, especially in Japan and in the eurozone.
