Policy uncertainty brings risk but sustained sell-off not on the cards - ANZ

Analysts at ANZ provide markets’ response to the lingering uncertainty in Europe and the US, which created substantial volatility of late.

Key Quotes:

“Policy uncertainty brings near term risk, but sustained risk sell-off not on the cards.”

“Some markets and assets are starting to trade with a risk off tone.”

“As the French election draws closer, French stocks are underperforming.”

“At the same time rising uncertainty in the US has drawn flows into gold funds.”

“In the near term we expect that volatility could spike.”

“We still think that any spikes will be short lived. While policy uncertainty is an important driver of markets, we think that it remains secondary to growth as a driver of sustained market volatility.”