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US investors look to Europe for stock gains

NEW YORK: As United States stocks are hit with a bout of volatility, some investors are looking to European equities, attracted by lower valuations and the region’s nascent emergence from the Covid-19 pandemic. European equity funds have notched their longest streak of net inflows in more than three years, according to data from EPFR, while fund managers globally surveyed by BofA Global Research said they were more overweight on European stocks than at any time since March 2018. Morgan Stanley’s strategists, meanwhile, have named holding European stocks as one of their top trades. The focus on Europe comes as the region’s benchmarks have kept pace with their US counterparts after years of underperformance. The STOXX 600 is up 10.7% year-to-date, broadly matching the S&P 500. The S&P 500 was off 1.7% from its record high as of Thursday, while the European index has slipped 0.8% from its peak.

OPINION | Inflation - ghosts and ghostbusters

Inflation - ghosts and ghostbusters

Inflation - ghosts and ghostbusters 25 May 2021, 05:42 GMT+10 Inflation is still very much in focus globally. Investors are nervous that sharply higher inflation will put pressure on central banks to raise interest rates, potentially knocking the global economy and short-circuiting equity markets. After a strong run, most global equity indices pulled back in recent days as risk aversion increased. This despite most US and European companies reporting unexpectedly strong earnings growth. Of course, markets never move up in a straight line, so a correction every now and then should not by itself be cause for concern. Rather, the question should be whether something fundamental has changed, causing a complete repricing of the outlook. As discussed further below, that does not seem to be the case. Last week the spotlight also turned to domestic inflation, its future trajectory and interest rate implications.

After blazing U S stock rally, some warn of tougher market ahead

After blazing U S stock rally, some warn of tougher market ahead
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