Fed, China, oil: these are the three risks that precipitaded the makets since the beginning of 2016. They could stay for long but Benjamin Melman, head of asset allocation and sovereign debt Edmond de Rothschild AM thinks there is the potential for a market rebound
In 2016, fear regarding asset quality (high stock of NPLs, regulatory scrutiny, lack of disposals due to pricing differences), as well as funding, lack of progress on M&A and investors’ high exposure to Italian shares, all drove underperformance
Markets rebound! Oil and Draghi pull equities off their lows
DBRS rating confirmed the European Union rating at AAA with a stable outlook. The Eu’s conservative budgetary management and the institution’s preferred creditor status are two of the factors benefiting European rating. DBRS mantains a low short term risk view also if it warns that ratings could be lowered in case of a deterioration in the credit rating of the Eu’s core member states and their committment to supporto the European Union.
