U.S. Stocks Ignoring `Underappreciated Risk' From Europe Slump
- Basket of American companies exposed to Europe up 23% in 2019
- IMF sharply downgrades its outlook for euro-area economies
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The soft spot for the global economy is a source of strength for the U.S. stock market -- and an under-the-radar threat to the rally as first-quarter earnings season looms.
A basket of American companies with outsized exposure to Europe is up 23 percent this year, outpacing the S&P 500 Index’s 15 percent advance and the 12 percent gain in European equities in dollar terms.