Europe Is Still in the Throes of Covid-19, but Its Stocks Are Rallying

European stocks have been on the rise as international investors reposition their portfolios for the global economy to return to normal—a trade that hinges on smooth reopenings in the region.

The pan-continental Stoxx Europe 600 index has gained 4.5% so far this month, pulling ahead of major U.S. gauges, and on Friday hovered close to its highest point in more than a year. The S&P 500 has added 3.5% in the same period and the Russell 2000, an index of small-cap U.S. companies, has increased 6.9%. The Nasdaq Composite has gained 1% so far this month.

Analysts say this is due to a rotation from growth to value stocks: Investors have been snapping up shares of companies hit hard by the pandemic and selling those that. Europe is emerging as a beneficiary of this trade, which banks on a strong economic rebound. “Europe is predominantly a value market, the U.S. is predominantly a growth market,” said Kasper Elmgreen, head of equity investing at Amundi. “This rotation benefits Europe disproportionately.”

Value stocks are thought to be trading below what they are currently worth. They are typically in established industries and pay dividends, and include banks, energy and industrial companies, which are also more sensitive to the economic cycle. Growth companies are younger and perceived to be innovative, with potential to do well in the future, such as technology.

False

Increase your productivity with Excel Templates. Plan future Cash Flow Statements to avoid Cash Flow shortfalls. Manage finance with Budgeting Spreadsheets.

? would not choose EU stocks over US stocks. they are behind in vaccinations

Trump's fault?

steenovenvj

You must not have heard? France, Italy are going back into lockdown. What reopening?

United States United States Latest News, United States United States Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Travel stocks lead Europe higher as U.S. futures drift ahead of tech earnings waveTravel stocks led the way on Monday after a key official said transatlantic travel may soon resume as European stocks edged higher. Looking for an expert trader who turns 1k into 4k, help’s you manager your forex investment for a formidable result? Write me on WhatsApp
Source: MarketWatch - 🏆 3. / 97 Read more »

U.S. stocks slide at open after lackluster China and Europe dataU.S. equities fell on Friday's open, following the cue of global stock markets as investors responded to signs of weakening economic activity in China and...
Source: MarketWatch - 🏆 3. / 97 Read more »

Airline stocks gain altitude as Europe plans to welcome more overseas touristsAirline stocks flew higher on Tuesday, as the European Union moved to welcome foreign tourists to the region, a sign that more normal travel and tourism... The only way to kill Covid19: 1. Working online (recommended). 2. Wear a mask. 3. Blockade, localize epidemic stamping, trace 100% F1-F5. 4. Find a cure. 5. Do not gather. ( Buy and Holder DogeCoin)
Source: MarketWatch - 🏆 3. / 97 Read more »

European stocks and U.S. equity futures mixed after records, with commodity stocks in the leadThe week was kicking off with gains for the Stoxx Europe 600, which was aiming at a fresh record, though slightly more cautious. U.S. futures were mixed,...
Source: MarketWatch - 🏆 3. / 97 Read more »

European stocks rise as rebound continues, while mining stocks react to fall in commodity pricesEuropean equities rose on Friday, as the rebound continues from a selloff caused by inflation fears, with mining stocks being the major drag on stock-market... Do you think this is what people really need right now? .markets .markets Ushiba $Ushiba WallStreet 'advisers' and mass media: CNBC, Bloomberg have to be very proud for luring clueless retail 'investors' into the biggest StockMarket BUBBLE in history! This is what they are paid for by big corporations - turning retail investors into bagholders!
Source: MarketWatch - 🏆 3. / 97 Read more »