Recently, global threats that directly affect the US or Asia are more affecting European markets, than in the countries that create them. Despite the good economic data from Europe, the rising euro, amid global uncertainty, has eradicated the hopes of gain in European stocks.
Stoxx Europe 600 index losses jumped to 1% on Tuesday, which is about five times more than the South Korean benchmark. Despite the strong start of the markets in early 2017, European stocks have been worst in the last six years. The main culprit for all this is the euro, which rises above the threshold that many traders and investors thought would reach "gaining profits". This has not been the case for a long time and the euro traded 14% higher than the dollar since the beginning of the year.
On the other hand, European fund managers have been the most negative since 2003, given their allocation of funds. Also, a survey at Banc of America this month shows that only 43% of respondents expect market growth from 76% in May.
Source: Bloomberg Pro Terminal
Jr Trader Petar Milanov
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