No One’s Really Freaking Out About a Slowdown in Europe
- Volatility traders bet calm will return; growth beats value
- Tighter credit-default swaps signal sentiment is more upbeat
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Europe is the epicenter for recession fears -- but investors are cheering.
The continent’s biggest companies have started to outperform their U.S. peers on a forward-earnings basis, the cost of insuring against corporate defaults has fallen this year and traders are betting that volatility will decrease.