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It is quite rare to be underlined: The European Securities Stock Exchange is in mind against Wall Street. While American tracks are trying to take off, European markets rise like a fried barracks. This performance is a cocktail of factors: hope for peace in Ukraine, massive investment in defense and market considered more attractive than Uncle Sam.
A European scholarship in full euphoria: towards a new golden age?
It is historical: Europe, affected by the economic crisis, is doing better on the stock market than the United States. German Dax rises by 17 %, CAC 40 French by 11.5 % and FTSE 100 British by 9 %. Meanwhile, the S&P 500 stagnates under the 1 %brand. According to Morgan Stanley, such a gap has not been observed since 2000.
Several factors behind this madness:
- Peace prospects in Ukraine that assure investors;
- An increase in defense spending in Europe;
- An economy that seems to be finally based on its torp;
- Even attractive European events with a ratio of 14x course/profits compared to 22x in the United States.
Europe also appears thanks to impressive investment flows. Kyrylo Shevchenko sums up well:
” Europe has attracted $ 12 billion in four weeks, a record in ten years. »»
But can this euphoria really spread in the stock market or is it a simple effect of catching up?
Investors rely on the virtuous cycle fed a decline in interest rates and recovery from the budget. But there is a big stranger: is Wall Street really far away or prepare a return?
Europe again defines its economic model: Opportunity or Mirage?
The EU controls its economic copy. Between Folding the United States on top of each other And the urgency of strengthening its strategic autonomy massively puts capital into defense and infrastructure. The PMI, which measures industrial activity and service, shows signs of improvement, predicts a trip of stagnation.
One of the engines of this decorated? Reflection of mergers and acquisitions in Europe, by 20 % per year. In addition, the European Central Bank could be more flexible, unlike the delayed Fed.
But everything is not pink. As the analyst Morgan Stanley remarks:
” American policy towards Russia and Ukraine could renew economic alliances cards. »»
Other uncertainties remain: Trade with ChinaVolatility of energy prices and the actual impact of investment in defense. Is Europe in the rediscovery process in itself or simply compensating for the delay accumulated for years?
After the week of Europe overcome Wall Street, Mars will be a month confirmation? Investors monitor further cash decisions and geopolitical development. Is the sustainable transition to Europe in Europe?
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Blockchain and crypto revolution! And the day when the impacts will be felt on the most vulnerable economy of this world, I would say against all hope that I was there for something
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The words and opinions expressed in this article are involved only by their author and should not be considered investment counseling. Do your own research before any investment decision.