Deutsche Bank Research questions length of European equities rally

P/E ratio gap between US and Europe falling

Deutsche Bank Research analysts have questioned whether the "extreme outperformance" of European equities will last as a series of market events have driven the market to outperform the US.

According to Deutsche Bank Research's Cross Asset Outlook report, "history would suggest to close our overweight" into European equities. Lansdowne Partners' Jonathon Regis: Opportunities in Europe amid a new world order "The longest that European equities managed to outperform and move up while US equities were down was 102 days in 2000," the report stated. "The current rally has taken a breather over the past days and peaked last Tuesday (after 103 days)." Deutsche Bank Research analysts further said they expect "a softening in tone in US politics to be a key upside risk for glob...