European markets still have a safety buffer from relative valuations that will protect equities from any downward pressure from rising interest rates. |
Fed and ECB rate hikes should not present a liquidity problem for equity markets. |
In the longer term, we are more optimistic. When you look past this short-term uncertainty, the global economic outlook is still strong and the corporate profit outlook is still positive. |
Interest rates pose little medium-term risk to equities in our view. |
It was a slightly negative day, partly because of waiting for when the Fed will start raising rates, |
It's difficult to say if it's cyclical or defensive sectors driving the market. Whatever sector is seeing some M&A speculation or activity is the one that's going well at the moment. |
The case for German equities does not rest on the outcome of the election. For more than a year now, change in Germany has been driven by the corporate sector, while government reform momentum has slowed down. |
The German market would view such a grand coalition as slightly negative because it could mean reforms will take longer to enforce. |
The market is beginning to price the end of the (Fed) rate hiking cycle in. |
The only trend you can really identify at the moment is that things seem to be M&A driven. |
We would be relatively optimistic for the European season as well. |