Europe's industrials feel the drag from weak France

The feeble French economy is causing pain for Europe's leading industrials, explains Richard Scrope from Oriel Asset Management.

The European industrials sector felt the full force of the rush out of cyclical stocks in early August. The EURO STOXX Industrials Goods & Services index fell over 12% between the beginning of June and mid-August. Admittedly various companies within the sector reported growing pains, and those with significant exposure to France understandably suffered more than most. With GDP and inflation weak at best in Europe, and Germany struggling under the weight of its exposure to Russia, it appears logical that industrial companies are somewhat cautious in their outlook. The France problem...