Why Eurozone equities are well placed to make gains on their global peers

Headwind from euro strength should abate

clock • 2 min read

Eurozone equities have started 2018 like they ended 2017, by struggling relative to their global peers.

The region is still stuck in the middle between strong fundamentals and a strong euro. The latter is weighing heavily on the internationally-exposed eurozone equity market that derives more than half of its revenues from abroad. But the fundamentals are simultaneously as strong as ever.  Growth is tracking close to 2.5%, the European Central Bank remains cautious because inflationary pressures are all but absent, and corporate earnings are growing at a robust pace. In fact, as evidence that the fundamentals do still matter, we only need to look at the performance of small-cap eq...

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