As political uncertainty drives their prices down... Look to Europe for some star performers

As political uncertainty drives their prices down...

Look to Europe for some star performers By Anne Ashworth Updated: 22:05, 12 July 2024 e-mail View comments France should be in a state of high excitement ahead of the start of the Paris Olympics later this month. Instead, the nation is in a state of turmoil following a deadlocked election. There are fears of a market rout if the far-Left, which gained most votes in last weekend's poll, forms a government and announces large spending plans – as public finances are already perilously stretched.

A hung Parliament, without a clear agenda, would also be hazardous to investor confidence. These outcomes would also send tremors through the rest of the eurozone, thanks to the bloc's currency and fiscal links. Jamie Ross, joint manager of the Henderson European Trust, comments: 'Political uncertainty in France is political uncertainty at the heart of the EU.

' The right specs: Essilor Luxottica is the worldwide leader in the sunglasses sector So what does this mean for Europe's pharmaceutical, software and other companies, which are seen as the nearest thing to America's 'Magnificent Seven' tech stocks? Earlier this year, US banks extolled the virtues of these businesses. Citi tipped its 'Super Seven' – ASML, Ferrari, LVMH, Novo Nordisk, Richemont, Schneider Electric, and SAP. Goldman Sachs recommended 'the Granolas' – GlaxoSmithKline (GSK), Roche, ASML, Nestle, Novartis, Novo Nordisk, L'Oreal, LVMH, AstraZeneca, SAP and Sanofi.

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