US Goldilocks scenario the best ally for European economy

Improved political visibility

Concerns about the effective lifetime of the business cycle in European markets have arisen following a disappointing Q1 and mixed macroeconomic figures from the US.

Expected macroeconomic data could continue to be revised downwards due to uncertainties surrounding President Trump's fiscal plan. However, excluding an exogenous shock, and given the performance of US equity markets year to date, investors expect the economy to continue growing, but at a slower pace. Strong labor market data may prevent a contraction in the dynamism of household consumption and, additionally, recent profit contractions for US companies remain inconsequential, such that they are not yet negatively impacting future capital expenditures.  It is premature at this stag...