3 European Stocks to Bag Before ECB Starts First Rate Cut Cycle in Years

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Deutsche Lufthansa AG Nouvelles

STOXX 600,Deutsche Lufthansa AG ADR,Teleperformance PK

Stocks Analysis by Investing.com (Alessandro Bergonzi) covering: Deutsche Lufthansa AG, STOXX 600, Deutsche Lufthansa AG ADR, Teleperformance PK. Read Investing.com (Alessandro Bergonzi)'s latest article on Investing.com

ECB's potential rate cut could boost certain sectors and make Europe a prime investment region.We reveal 3 undervalued stocks poised for significant growth in this new economic environment.to cut interest rates for the first time since 2019 tomorrow. While the exact size of the cut remains uncertain, analysts predict a potential decrease of 150 basis points by the end of 2025, with rates settling around 2% in the long term.

This theory seems to hold water based on historical data. The chart above, prepared by Bloomberg, shows how European stocks thrived from 2011 to 2015 when interest rates were cut – as long as a deep recession wasn't present.The ECB's move toward lower interest rates presents an opportunity to recalibrate your portfolio. Consider prioritizing defensive sectors that benefit from lower borrowing costs and explore European equities, which may outperform in this new monetary landscape.

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