Barclays’ Cau Says European Stocks Pricing High Trump Premium
- Tariff concerns have been a drag on European stocks: Barclays
- Strategists see potential high single-digit hit to EPS growth
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The risk of potential trade tariffs resulting from a Donald Trump US election win has already been priced into shares of major European exporters, according to Barclays strategists.
“Tariff concerns have been a drag on EU equities,” the research team lead by Emmanuel Cau wrote in a note Wednesday. They estimate that a full-blown trade war could result in a high single-digit drag on earnings per share growth.