Why investors are not buying Europe’s revival
Even though the continent’s stocks are in a “sweet spot”
The profits of European listed firms rose during the second quarter of this year. In much of the rest of the world, that would be unremarkable. On the old continent, 4.3% earnings growth in the three months to June, compared with the year before, was enough to provide a boost to the Stoxx 600, its benchmark index. After all, the growth came after four consecutive quarters of falling earnings. Markets strategists are now talking up European stocks. Morgan Stanley, an investment bank, even says that they are “in the sweet spot”.
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This article appeared in the Finance & economics section of the print edition under the headline “Going cheap”
Finance & economics August 24th 2024
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