Darius McDermott: What to tell clients about the outlook for Europe

Pointers on bonds and equities

clock • 4 min read

The ramification of the recent Italian referendum are fascinating, says Darius McDermott, but clients with European exposure are likely to have more immediate concerns - such as the near-term outlook for their investments

What will it take to upset markets? If Brexit saw UK stocks reach record highs - albeit after an initial shock - and Donald Trump's victory in the US presidential election failed to send markets crashing, it is perhaps not surprising in hindsight that European equities traded higher last week after another ‘anti-establishment' vote in the Italian referendum. On the face of it, the result should prove negative for Italian - and European - risk assets as Italy has lost an opportunity for direly-needed reforms. Outgoing prime minister Matteo Renzi's proposed changes to the constitution were...

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