Fiercely burning or slowly simmering? US and Europe’s contrasting economic recoveries
US economy is recovering rapidly while Europe is taking longer, but what does that mean for investors?
In the depths of the pandemic disruption, there was plenty of discussion about the shape of the recovery: U? V? W? K? Today, it is possible to put some tangible data around that recovery as the vaccine rolls out and economies unlock. What can be said about the type of recovery that has materialised?
In the US, certainly, the recovery appears materially stronger than anyone initially anticipated. Retail sales, services and manufacturing data all point to a booming economy. The most recent set of IHS Markit US Services PMI data showed a reading of 64.7 at the start of the second quarter, up from 60.4 in March (50 indicates expansion).
The EU is not a no-go zone - cash in on European stocks dailymail.co.uk - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from dailymail.co.uk Daily Mail and Mail on Sunday newspapers.
The ill-conceived and swiftly abandoned plan for a European league of football clubs sparked uproar this week.
There may not be quite the same level of antipathy towards European markets among UK investors, yet many are distrustful as a result of factors like Brexit friction and the EU s poor handling of the vaccine rollout, with its consequences for tourism and other industries.
The possibility that French and German elections could bring populists to power is another concern. There are also questions about the Wirecard scandal, an affair that has exposed the deficiencies of Germany s financial watchdogs.
Fly the flag: Attention is turning to Europe s stock markets which look attractively priced
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