Too Much Love for Europe Stocks Proves Costly in Global Drop
- Stoxx 600 has trailed U.S., China benchmarks since September
- Europe more vulnerable as it's favored trade: BofA, JPMorgan
The Stoxx Europe 600 Index Down 4.5% This Week
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European stocks may be paying a price for being the darling of equity investors.
Heading into 2016, strategists were falling over themselves to outline reasonsstocks in the region would outshine global peers, while traders poured moneyinto funds betting on a rebound. The enthusiasm is haunting people now, says Bank of America Corp.’s James Barty. Europe’s equities have trailed counterparts in the U.S., Japan, and China since the world’s stocks bottomed in September. This week’s rout is making it worse.