After the election noise: The long-term outlook for Europe

Brexit and US-China tensions still to deal with

European equity markets have delivered strong returns this year, despite recent turbulence, writes Kasper Elmgreen, head of equity at Amundi.

Now that we are done with the European elections, one source of unrest has been removed, even if the full implication of the new European Parliament will still need to play out. Entering the year investors were nervous about slowing global growth and a potential recession, trade tensions between the US and China, and Brexit. Today, growth expectations have come down significantly, but look to be stabilising. Brexit has been postponed (but not resolved), the US-China trade tensions remain uncertain with the most recent development having been negative, and finally economic indicators a...