Recent political news, especially from France, have taken their toll on markets. Insurance costs for hedging French sovereign risk have risen since early February. Rising uncertainty has an impact on other markets, too: Despite a robust set of economic news and strong earnings data, the European equity market is lagging its global peers, like U.S. stocks. Going forward, this might also offer an opportunity: if the political risks do not materialize, European equities might be ripe for a catch-up rally.
Sources: Bloomberg Finance L.P., Deutsche Asset Management Investment GmbH; as of 2/9/17