The fallout from the US earnings season will be a key event to follow amid wider geopolitical uncertainty as investors look ahead to May, DNB’s head of manager selection has said.
Speaking to Citywire Selector, Fredrik Wilander, who was previously a cover star for Citywire Selector magazine, said he would be focusing on political events and earnings in the near-term.
‘Geopolitical risk in the Middle East, Korea and a likely second round of the French presidential election can all lead to volatility both for markets as a whole, but also a spread in relative returns between sectors and individual assets.
‘Dispersion stemming from political risk we witnessed on multiple occasions in 2016, with an impact on relative returns across asset managers.
‘In addition the Q1 earnings reporting season draws to a close in May, and particularly interesting will be the market reception on earnings from those sectors that have performed strongly on the back of the U.S. presidential election, such as financials.”