European Selloff Means Stocks Look Alike as Correlation Surges

Europe’s rout is sparing few companies, making stock picking a challenge.

The Stoxx Europe 600 Index has lost 7.3 percent from its record less than two months ago, and about two-thirds of its shares have fallen each day on average in June, the most since data going back to 2006. Growing concern over whether Greece will remain in the euro area is prompting investors to sell equities, sending the correlation among the region’s stocks close to levels not seen since 2012.