Europe Stocks at Recession Prices Show Growth Faith Falters
- Euro Stoxx 50 had its largest three-day slump since August
- Shares now trade at biggest discount in a year vs U.S. stocks
Are Europe Stocks at Recession Prices?
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For European investors trying to assess just how bad sentiment is right now, consider this: the last time stocks were this low, the region had just suffered its longest-ever recession and corporate profits were about to shrink a third year.
Signs of an improving economy haven’t deterred bears from punishing the Euro Stoxx 50 Index in a global rout, sending it to its lowest close since August 2013. Concerns ranging from oil to bad loans held by Italian banks have cast a shadow on the region’s recovery, with European stocks failing to lure bargain hunters even though they trade at their biggest discount in more than a year relative to U.S. shares.