Why 2017 is an opportune year to redefine European politics

Threat of Eurosceptic movements

Given the near-term economic outlook is solidifying in the US, stabilising in the emerging markets and moderating in Europe, we believe European equity markets should prove resilient to the looming European political uncertainty in 2017.

While it could redefine the economic and financial landscape in the region for decades, the European banks' efforts to fast-track restructuring and recapitalisation ahead of potential political fallout later this year are driving increased European equities strength. This is removing concerns over systemic risks lurking within some of the largest lenders which, combined with the deep discount at which European bank stocks trade generally, present investors an entry point to position opportunistically around the European equity market. Indeed, we expect European equity strategies with ...