A Year After Europe Stocks Record, Crash Angst Hits Traders
- Tumbles have followed after Stoxx 600 reached similar peaks
- Investors are pessimistic over earnings growth, economy
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A year ago today, European equities hit their highest levels ever. But the euphoria about Mario Draghi’s stimulus program didn’t last, and trader skepticism is now rampant.
The Stoxx Europe 600 Index has lost 17 percent since its record, and investors who piled in last year are now unwinding bets at the fastest rate since 2013 as analysts predict an earnings contraction. The trading pattern looks familiar: a fast run to just over 400 on the gauge, then disaster. The gauge was little changed at 8:23 a.m. in London.