Euro zone equities: More to come
Following the victory of Emmanuel-Macron, we see more potential in Euro zone equities and remain overweight, writes Christoph Riniker, Head Equity Strategy Research, Julius Baer
Our base case scenario materialised. Emmanuel Macron will be the next French president. Equity markets had already reacted very positively after the first round of the elections (see chart), before changing into waiting mode. We therefore believe that there is more to come today and in the following days and would assume a short-term potential of another three per cent to five per cent. The next important dates to watch are 11 and 18 June, when general elections take place. From a fundamental perspective, we stick to our constructive view on Euro zone equities and financials.