From Morningstar: 2024-07-11 07:01:00

The year 2024 is marked by elections across 50 countries, with 1.5 billion people voting amidst political instability. In France, a political stalemate ensued after Marine Le Pen’s far-right party won 33% of the popular vote. Left-wing parties collaborated to suppress her ascent. The French stock market fluctuates with certain stocks undervalued.

European fund managers are strategizing on asset allocation amidst political uncertainty. The surprise election result in France has led to increased popularity of far-right parties across Europe. While fears loom about a protectionist and populist shift, some remain skeptical about the long-term impact on the eurozone economy. Changes promised by newly elected officials may be limited by existing EU institutions.

In the UK, a Labour landslide win prompts a rally in housing and construction stocks. New chancellor Rachel Reeves introduces reforms in the planning system and announces ambitious homebuilding targets. Labour’s victory is expected to benefit UK homebuilders like Persimmon. Investors watch for obstacles in planning reform and monitor the impact on renewable energy projects.

The US election sees former president Donald Trump leading in polls against incumbent Joe Biden. Investors prepare for a possible Trump victory, with expectations of a more pragmatic administration. Both candidates have critics and their policies come under scrutiny amidst a divided electorate. The outcome of the US elections remains uncertain and significant for global markets.



Read more at Morningstar: Election Year is Forcing Fund Managers to Change Tack