European Stocks Little Changed as Investors Focus on Trump Oathby
European stocks closed little changed as investors turned their focus to the inauguration of Donald Trump as U.S. president, and whether he can continue to fuel investor expectations of stronger economic growth boosted by more deficit spending and tax cuts.
The Stoxx Europe 600 Index fell less than 0.1 percent at the close. The index has lost momentum since its outperformance of the S&P 500 Index in December. Banks in Europe advanced for a second day, while construction companies led gains. The FTSE 100 Index posted its first weekly drop in seven, down 1.9 percent.
- Billionaire George Soros said Trump will fail and the stock market rally since the November election, spurred by the Republican’s promises to slash regulations and boost spending, will come to a halt.
- In the run-up to Trump’s swearing-in, U.S. equity funds have seen weekly outflows of $2.5 billion, according to a strategy note from Bank of America-Merrill Lynch, citing data from EPFR Global.
- For Morgan Stanley equity strategists including Matthew Garman and Graham Secker, European earnings are “highly likely” to grow strongly this year after five years of profit declines, they wrote in a note.