Following a year packed with economic and political uncertainty, more risk factors are expected to unfold in 2017. For one strategist however, Brexit and Donald Trump's presidency isn't what concerns him the most at present, when looking at the year ahead.
"My eyes are focused on the 24th of January when the constitutional court in Italy will vote on whether the electoral law change that took place in 2015 is going to be held up," said Mike Bell, global market strategist at J.P. Morgan Asset Management, told CNBC on Tuesday.
In early December, the country's constitutional court announced that it would hold a hearing on its electoral law this coming January to examine its legitimacy. The electoral law — known as the "Italicum" — helps provide more parliamentary seats to a party who wins at least 40 percent of the popular vote.
At first, the Italicum law had been created to ensure greater political stability in Italy; however concerns are now rising that if this law is not changed, populist party Five Star Movement (5SM) could take advantage of the extra parliamentary seats. 5SM have previously indicated that it would renegotiate Italy's membership of the euro if it came into power.
"If (it's) not, and they change back to a system that's more proportional, then that reduces the risk of the Five Star Movement taking power whenever the Italian election eventually happens," Bell said.
"And that for me would remove one of the biggest risks for 2017 early on in the year, and therefore potentially brighten the outlook for European equities."