Geopolitical tensions and bad news on European growth have depressed markets this summer. But while Wall Street1 rebounded since August 8, which allowed American stock index erased or less the accumulated losses since early July, the stock markets of the euro area, they, struggling to recover. Paris and Frankfurt are still in the red. The Italian stock market dropped more than 7% since July 1.
International investors, who had placed continuously capital in Europe in the first half, backed off. They took out of the European places 7 billion since July 9. Moreover, among the world's leading managers, it is fashionable today to advise clients to steer clear of the values of the Old Continent "This year we expect so little growth in the euro area than any shock could be fatal. With a very high and with budget cuts forced unemployment States, it will take time for the economy to find a stride. This encourages investors to be cautious "says Frédéric Rollin advisor investment strategy at Pictet AM. Markets
rely on the ECB
Not to mention that after several years of rising European equities are no longer sold off and the good news coming soon on the side businesses payday loan. "Their sales do not increase. They save their profits by lowering costs to bolster their margins, but it is not sustainable long, "notes Patrick Moonen, strategist at ING IM.
The markets will therefore need a little help to regain hope. "The BCE2 intervene in one way or another," predicts Patrick Moonen. Meanwhile, it is the decline in the euro, which occupies the minds. "It will support corporate earnings in the third quarter," said Gilles Guibout, head of European equities at Axa Framlington. Analysts could then begin revising their earnings forecasts upward, who kept them for months to revise downward.
"But what really would help Europe is that the euro, with the tightening of rates in the United States, passes under 1 30 dollar, "said Frederic Rollin. Many managers are already counting "on accelerating global growth, led by the United States and emerging," says Gilles Guibout. European markets would benefit as well.A potential policy holder should always study their life insurance quotes carefully and all terms contained within them should be properly understood before any final decision is made.