Is a lack of strong governments holding Europe back?

Risks remain despite tailwinds

clock • 2 min read

J.P. Morgan Private Bank's Rajesh Tanna examines the headwinds and tailwinds for European growth in 2015.

European markets started the year strongly, rising 21% by mid-April, but subsequently experienced an 18% drawdown by the end of August. Although near-term volatility will likely remain elevated, the sell-off has created opportunities. The three key tailwinds that existed for Europe at the beginning of the year remain today. Firstly, the euro currency is significantly weaker than it was a year ago. This boosts profit growth through translation and transaction effects, and over the longer-term serves to make companies in Europe more competitive versus global peers, helping them to gain ...

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