Euro Goes From Bane to Boon for Struggling European Stocks

When things go south for European shares, you can usually count on a silver lining: a weaker euro.

That’s because when the exchange rate falls, European companies operating globally are more competitive, with their overseas earnings getting a bump from the currency translation. And the region’s equities may need that even more urgently now, after the benchmark posted its biggest five-day drop in seven weeks amid concern over Turkey’s turmoil, trade tensions and political worries about Italy.