European stocks face a record outflows.

18.09.2018 / 14:09

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European capital markets have faced billions of dollars of outflows in the next few weeks due to the situation with Breckit, trade moods and slowing growth in the eurozone.

According to latest estimates by Bank of America Merrill Lynch, European stocks suffer from investor withdrawal, which equals $ 41.3bn. and continues in 26 of the last 27 weeks.

Investor confidence in the eurozone is lacking due to weaker economic growth than in the US, where investors enjoy the Trump corporate tax cuts.

The MSCI index, which represent the stock market in developed European countries, has decrease by 4.3% since the beginning of the year. For comparison, MSCI's Global Index for the Stock Market rise by 2.8%.

While recent economic data shows that both the eurozone and the UK there are improvements in the labor market and wages - the uncertainty surrounding Brexit, tense trade relations and problems surrounding Italian budget negotiations have an impact on investors.

Source: Financial Times

Chart: Financial Times

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European stocks face a record outflows.

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