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Perspectives of the stock market of Europe in 2015 are more favorable than in the USA

European stock market has more favorable perspectives in 2015 than the USA stock market, considers analyst of the JPMogran Mislav Matejka.

Perspectives of the stock market of Europe in 2015 are more favorable than in the USA

Last years leadership of the American markets was undisputed: stock market index S&P 500 beaten records six years in a raw, while the exchange rate of the US dollar stayed ahead in growth rates most of the main world currencies. Meanwhile, the Europe had a role of ‘the ugly duckling’, due to the fact that a few countries have been on the edge of economic collapse during several years, writes Market Watch. Now the perspectives of the European markets seem to be more favorable, and this opinion starts to get more support of increasing number of experts, as marked by M.Matejka.

‘Move in the European zone has started, but I still think that it has been only half way, - says M.Matejka. – We consider that the stance of investors in European assets is far from being excessive. The flows of finance started returning to the region quite recently following the considerable the outflow last year, as well as in the period from 2009 till 2012.’ Opposite to it, the stance of investors in the American assets is close to the record maximum and the outflow is not yet being observed, as marked by the expert.

M.Matejka also expects that economic activity in the European zone continue to increase, noticing the growth of money supply and restoring of consumer’s trust. According to him, an additional support to the region will be provided by the Program of Quantitative Easing (hereafter, the PQE) launched by the European Central Bank (the ECB) on 09th of March.

Expert notices that the investors actively reconsidering the income forecasts of the European companies as increasing, while the forecasts for American companies getting worse.

‘It is interesting that for the US companies, even beyond the oil sector, the income forecasts are going down, while for the European zone are going up,’ – says the expert. As of his assessment, the average growth rates of the income of European companies in 2015 will comprise 15.3 % and the USA companies - 1.8 %.

Low growth rate of salaries and weakening of euro towards US dollar become the other factor of support of the European zone and increase a ‘bull intention’ of investors towards European financial markets, marks M. Matejka. In this light he recommends investors to focus on the shares of European banks, steel producers, transport companies, as well as diversified of financial companies, producers of capitals goods and construction materials. ‘Companies of these sectors, according to our opinion, in this moment has the best potential of growth in terms of shares’, - marks expert.

Perspectives of the stock market of Europe in 2015 are more favorable than in the USA
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