Three factors creating 'perfect storm' for European equities

Markets tumble again

Jason Stather-Lodge, CEO of OCM Wealth Management, discusses the three key reasons European markets have suffered this week and why he remains invested in equities.

European markets opened lower on Tuesday morning by around 3% as car makers head for their biggest drop since the financial crisis of 2008. This is not driven by a change in the macroeconomic picture, but can be attributed to the following three factors: 1. Volkswagen Volkswagen led the sector lower after it set aside some $7.3bn to address irregularities in diesel engines, where it has been fiddling the emissions test and is expected to be fined. As I write the board has changed and the CEO has resigned, so this will cause uncertainty in the whole sector. As a result, other c...