Economics
Draghi Stock Rally Runs to Record Valuations After 50% Gain
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The two-year rally that has restored more than $4 trillion to European share prices is sending equity valuations to levels not seen in a decade just as investors turn away from record low bond yields.
Gains have pushed the Stoxx Europe 600 Index to 17.5 times annual earnings, the highest since 2002, data compiled by Bloomberg show. Companies trading at above-average multiples such as Kingfisher Plc, the London-based home-products maker, and steelmaker Vallourec SA in Boulogne-Billancourt, France, tumbled in the past month after reporting disappointing earnings.