Europe’s Stock Leaders Are Fading in Bad Sign for Future Returns
- Region’s equities less likely to perform when defensives lead
- Europe is at risk from trade war, fading economic growth
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The engines behind two years of European stock gains are losing power, leaving the region’s equities facing a void at a time when concerns over slowing growth and China tensions are testing investor confidence.
A luxury sector led by LVMH Moët Hennessy Louis Vuitton SE has tumbled over the past six months along with automotive firms, while in more recent months healthcare heavyweights such as Novo Nordisk A/S and tech leaders including ASML Holding NV have slid from their peaks. And with no obvious candidates to take the baton, the region’s equity performance has been left looking exposed.