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Emmanuel Macron France election Copyright Sean Gallup, Getty Images
Emmanuel Macron

Credit Suisse Says `Animal Spirits' Are Back Among Investors

The outcome of the French vote removed one of the biggest worries among investors

By Cindy Roberts

(Bloomberg) --Credit Suisse Group AG is seeing a greater willingness among clients to put their cash to work after economic and political uncertainties eased.

“Animal spirits seem to be back in both the real world and the financial world,”  Nannette Hechler-Fayd’herbe, the bank’s director of investment strategy and research, told journalists in Zurich on Wednesday. “We are fully invested in our portfolios” and “have no overweight in cash, in contrast to last year.’’

The outcome of the French vote removed one of the biggest worries among investors, Hechler-Fayd’herbe said. The euro surged after Emmanuel Macron defeated Marine Le Pen, who campaigned on promises to lead France out of the euro currency region.

Credit Suisse is in the second year of reshaping its business model to expand in wealth management, which has steadier revenues and requires less capital than volatile trading operations. Muted client activity has frustrated the strategy, with the very wealthy preferring to hold cash rather than invest because of uncertainty over the direction of markets.

Client activity is particularly strong in Asia, said Global Chief Investment Officer Michael Strobaek. The MSCI Asia-Pacific Index has climbed 13 percent this year and the Hang Seng Composite Index was up almost 17 percent through Wednesday.

 
To contact the reporter on this story: Cindy Roberts in Zurich at [email protected] To contact the editors responsible for this story: Elisa Martinuzzi at [email protected] Cindy Roberts, Christian Baumgaertel

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