Shane Oliver, Head of Investment Strategy and Chief Economist.
The following note looks at the 3 reasons not to be concerned about an Itexit
The key points are as follow:
- A populist coalition government in Italy is negative for Italian assets. Lingering uncertainty about a push for Italy to exit the Euro is likely a negative for the Euro too, though an Itexit and a Euro break up remain unlikely.
Eurozone shares are likely to be relative outperformers globally thanks to more attractive valuations than the US, easier monetary policy and a falling Euro.