Italy’s FTSE MIB has added 17% to its value this year and from September 2016 – September 2017, the European index is up 42%.
The rally came after some of the political hurdles in the eurozone were demolished. Populism, nationalism and Euroscepticism were defeated in France and Holland, paving the way for the eurozone to flourish under the united front of its nations.
The eurozone’s economy is enjoying its fastest growth in six years, attaining foreign investment as the region overcomes internal threats.
Germany’s polls suggest a victory for Angela Merkel, in what will be her fourth term as chancellor. If Merkel wins this provides the eurozone with the duality of France’s Emmanuel Macron’s new fresh perspective with Merkel’s hard-earned experience. Investors hope the two will take the euro to new heights.
On Tuesday, Macron will lay out a set of reforms for the eurozone, rivalling the eurozone’s traditional approach to the single currency.
With stability and a clear agenda for the region, there is very little holding back the eurozone.
Today’s figures from the region all came in better-than-expected: German Flash Services PMI at 55.6, German Flash Manufacturing PMI at 60.6, French Flash Manufacturing PMI 56.0, French Flash Services PMI 57.1, Flash Manufacturing PMI 58.2, Flash Services PMI 55.6.