Q2 2017 – As expected, no candidate was able to win the majority of votes in the first round of the French presidential elections. Protest voters rallied behind the frontwoman of the right-wing populists. In the second round of voting, we expect voters to show a clear commitment to democracy and European unification, as they did in the Netherlands a few weeks ago.
Subsequently, the NRW elections on May 14 could provide a surprise in that the right-wing populists, who are completely at odds with each other and lack a concept, could face the future of a one-hit-wonder, similar to the Pirates a few years ago.
More serious impacts on the markets could result from the elections for both chambers of the French Parliament in the summer.
Although the second quarter continues to promise stable stock markets amid high volatility, we are adopting a more cautious stance toward the European markets heading into the summer and are increasing our non-European investments in this context.
We wish you continued success in your business endeavors!
