Deep Dive: Colder winters will lead to price pressures

Europe has lagged behind US

clock • 3 min read
Andrew Harmstone of Morgan Stanley Investment Management

Andrew Harmstone of Morgan Stanley Investment Management

Andrew Harmstone, head of global balanced risk control at Morgan Stanley Investment Management, dives into European equities

Despite being tipped by most sell-side strategists to outperform the US equity market in 2021, European equities have lagged their US peers.  We believe one reason for the weaker performance is the dramatic softening in Chinese growth. European equities have historically relied heavily on strong growth from China boosting demand for certain key industries, such as German auto manufacturers and French luxury goods makers.  As China is currently facing multiple headwinds to growth, we expect a stabilisation at lower growth levels, translating into slower-than-expected sales and earnings...

To continue reading this article...

Join Investment Week

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now


Already an Investment Week


More on Europe

Daryl Liew, CIO at REYL Singapore.

REYL's Liew eyes return to overweight positions in Asian quality growth names

'It's a question of timing'

clock 28 June 2022 • 3 min read
The UK accounted for €4bn in net UCITS sales in April.

Monthly outflows persist across equity UCITS and AIFs in April

Improved from €42bn outflow in March

clock 27 June 2022 • 1 min read
Brian Raven, Tavistock chief executive

Tavistock revenues jump 14% amid year of acquisitions

Bought LEBC research firm

clock 27 June 2022 • 1 min read