Why Euro-Dollar Parity Is Actually Bad News for European Stocks
- Dollar matches euro for the first time in two decades
- Glum investor mood could overshadow lift to export-heavy firms
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Just as European investors thought the outlook for the region’s equities couldn’t get much bleaker, the euro has declined to reach parity with the dollar for the first time in two decades.
The single currency extended declines to trade at par with the dollar on Wednesday with the greenback strengthening on the back of hotter-than-expected US inflation data. The Stoxx 600 Index fell as much as 1.9% before trading 1.6% lower by 1:52 p.m. in London.