Economics
HSBC Expects U.S. to Make European Stocks Appeal Again in 2019
- Investors have pulled $43 billion from region’s equity market
- Sentiment could change in 2019, HSBC strategist Sels says
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European equities might not remain on the sidelines for much longer, and all thanks to the U.S. economy, according to HSBC Private Banking.
The least-loved equity market of this year, European stocks, has struggled as investors pulled about $43 billion from the region amid political and economic concerns, preferring the U.S. stock market instead. But this is about to change, according to HSBC Private Banking, which expects the pace of the U.S. economic boom to start slowing in the first half of 2019, fueling the shift of attention toward Europe. It could also possibly make HSBC raise its European-stocks rating to neutral from underweight.