Record low rates and post the elections: Where to invest in Europe

Political and structural changes abound

The European Central Bank (ECB) has stated it will maintain record-low interest rates through the first half of 2020.

Monetary policy therefore has some near-term certainty; however, politics remains deeply uncertain and continues to act as a prominent driver of market returns in Europe. While the outcome of the European Parliamentary elections we felt were benign, with more pro-EU supporters winning share than not, the campaign for top jobs, both in parliament and at the European Central Bank and not to mention for UK leadership, is creating some noise within the market. With this uncertainty, both at home and on the international stage from reigniting US-China tensions, 10-year Bund yields have fal...