Key points
- Elections in the Netherlands, France and Germany look highly uncertain and could interfere with the ongoing recovery scenario in place.
- The future of the Eurozone is heavily dependent on the results of these elections, particularly from the outcome of the election in France.
- European markets have not priced the extreme scenario of a “Frexit” – France leaving the Eurozone.
- Impacts from politics on European assets could be asymmetrical: potential heavy losses in case of extreme political scenario versus a modest rebound in case of a “pro-European” outcome from the elections.
Michaël Lok
Group CIO and Co-CEO Asset Management
Norman Villamin
CIO Private Banking
Patrice Gautry
Chief Economist