St James Place : Capital concerns

If anywhere can claim to be capitalism's birthplace, it is probably the Netherlands. Karl Marx called it the 'model capitalist nation of the seventeenth century', the Amsterdam Stock Exchange became home to the first tradable shares in its founding year of 1602, and the country suffered the world's first recorded investment bubble, in tulips, in 1636-37. The Netherlands' history of global trade and exchange has often been cited as one reason behind its reputation for open-mindedness. This Wednesday, as the country goes to the polls, that reputation - and much else besides - faces a threat.

The focus of EU and market fears is Geert Wilders, the firebrand Eurosceptic whose Party for Freedom is currently leading in the polls. Yet the refusal of other major parties to form a coalition with Wilders, together with recent polls, suggests a Wilders premiership is highly unlikely. The Amsterdam Stock Exchange, now 415 years old, enjoyed a rally of more than 1.5% last week. Besides, extreme candidates are not necessarily bad for markets - the S&P 500, despite a 0.53% dip last week, has rallied significantly since Donald Trump's victory.

This week's bulletin also includes:

• The UK chancellor offered a low-key Budget with few giveaways, targeting the self-employed through dividend income and NICs.
• In a less rosy week on markets, investors remained confident that the Federal Reserve will raise rates this week.
• Polls showed a slight swing away from Eurosceptic Geert Wilders' party ahead of Wednesday's Dutch election.
• Expectation grew that the Lords will wave through Theresa May's Brexit bill, freeing her to trigger Article 50 this week.

View this week's Market Bulletin, which contains thoughts and opinions of St. James's Place and our range of investment managers on the key issues affecting investors.