Fears that the European economy has been knocked off course by the referendum vote have not been reinforced. July’s economic sentiment data showed an improvement for the Eurozone but a deterioration for the wider European Union – offering no final conclusion. Equity markets have generally rebounded and volatility has come down since the leave vote. One should be wary of placing too much emphasis on high frequency data but so far it looks like both the economy and financial markets have weathered the spike in uncertainty with surprising resilience. Further market gyrations are inevitable as negotiations between the UK and the EU continue and we have yet to see the full impact in the data. The deal struck between Westminster and Brussels will ultimately dictate how European commercial property will perform going forward and we will continue to monitor the evolution vigorously.
Source : CBRE Global Investors