Investors should step back from the current round of political turmoil in Europe and pay attention to the fundamentals, strategists have suggested.
Political uncertainty is taking over Europe with Brexit negotiations around the corner, a new independence vote due in Scotland and a general election in the Netherlands. Later in the calendar, there will also be elections for heads of state in France, Germany and possibly in Italy.
"Recent data suggest the euro economy has accelerated and is growing faster than consensus expectations," Credit Suisse said in a note on Monday.
"The corporate sector is at the heart of this expansion. Its financial fundamentals have improved markedly over the last few years. Investment is picking up. And job creation is rapid," the bank added.
Following the last year's surprises of the Brexit vote and the election of President Donald Trump, investors have taken a defensive approach when it comes to assessing the potential outcomes in Europe. Their concerns have been expressed by higher yields in the French and Italian government bonds. But they might be reading too much into the politics of it, several economists have said.