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Strategy: With Fading EU Political Risks, Global Business Cycle Back In

Published 05/05/2017, 05:44 AM
Updated 05/14/2017, 06:45 AM

Political risks are fading in Europe with Macron likely to become the next president of France.

Economic momentum looks strong in the euro area.

However, PMI indicators are pointing to a softening of the economic cycles in the US and China.

Chinese financial markets are seeing increasing stress and commodity prices have also come under pressure.

The impact on equity prices of a softer global business cycle is likely to be mitigated by strong earnings growth.

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