Investors are buying up European travel, retail and luxury goods shares, betting that a rebound in the region’s economy will tempt consumers to spend on more on holidays and expensive items. Carmakers Renault and Stellantis have risen more than 25 per cent since the beginning of February. German entertainment group Eventim is up 23 per cent and Danish jewellery maker Pandora up 15 per cent in the same period, as fund managers bet pessimism over European economic growth is overdone.
” Pictet began to buy more consumer discretionary stocks and cut back on consumer staples at the beginning of March to benefit from what Paolini called “the potential for a positive surprise” in personal spending in Europe. These stocks are a relatively safe bet, Paolini said, because the companies that would profit most from rising consumer strength in Europe would also benefit from continued resilience of consumers in the US, offering secure returns even if Europe’s economic recovery falters.