FXStreet reports that economists at Morgan Stanley see four reasons why European equities could continue to outperform global peers.
“The economic data across Europe has come in considerably better than expected. Looking forward, one consequence of the initial delay in Europe’s recovery is that there is further room for improvement in some of the key economic indicators over the summer months.”
“The European stock market is very global in nature, with European companies also benefiting from the strong growth all around the world. So far this year, consensus earnings forecasts for 2021 have risen by over 5%.”
“Europe’s so-called ‘unloved’ characteristics mean that the region looks considerably cheaper than global peers and investor positioning is much more muted.”
“The European Recovery Fund should get the green light soon. These monies should both boost the underlying economic growth, especially in the periphery, and further reduce political risk premium. If this, in turn, piques investor interest back towards the region, then this could be a powerful catalyst for further outperformance ahead since global flows are often a key marginal driver of European equity performance.”
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.