Four Charts Showing How Nervous European Stocks Are: ‘Extremely’
- Defensive, low-volatility, larger equities are outperforming
- Europe stocks face Italy risks, rising yields, luxury slowdown
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When it rains, it pours. That’s how European markets felt like as the equity benchmark slid to a six-month low this week amid a flood of bad news.
Italy’s populist leaders are flouting financial markets and sticking to their aggressive fiscal policy -- just as global equities reel from a jump in bond yields amid continued monetary tightening in the U.S. Meanwhile, European industries such as semiconductors and chemicals are flashing signs of weaker demand, and luxury darlings are facing a customs crackdown in China.