Merkel gone; Macron facing elections; Shares still lagging behind US
By ROSIE MURRAY-WEST, FINANCIAL MAIL ON SUNDAY PUBLISHED: 16 October 2021
With gaps in food shelves, an energy crisis and rising inflation, it has been hard to look away from UK news in recent weeks.
But those who have also kept an eye on our Continental neighbours will realise that the political landscape in Europe is being dramatically reshaped.
The departure of Angela Merkel, after 16 years at the helm in Germany, is inevitably causing uncertainty and it is still not clear who will lead the coalition that will govern the country. Negotiations could take months.
Meanwhile, France is also gearing up for Presidential elections next year…
WHY THE TIDE IS JUST STARTING TO TURN
Tracy Zhao, senior fund analyst at wealth platform Interactive Investor, points out that the STOXX600 index of leading European companies has climbed 16 per cent this year.
This is lower than the equivalent 20 per cent increase in the value of the leading US companies, as measured by the S&P500 index.
Given the momentum of the economic recovery in Europe, Zhao believes there is merit in the region’s stock markets…
SO WHERE DO THE OPPORTUNITIES LIE?
John Bennett, co-manager of the Henderson European Focus Trust, is among those investment experts who believe there are opportunities to be found in Europe…
James Carthew, who runs investment research group QuotedData, says that in bumpy European markets, those who are successful at picking European stocks have done well and will continue to do so.
‘These have been stock-pickers’ markets and not every manager has managed to navigate this successfully. Three-year figures give a good indicator of who is doing well,’ he says.
Read more here