Europe’s Equity Rally Shows Too Much Confidence on Ukraine Peace
Ukrainian servicemen at a front line position in the Donetsk region.
Photographer: Anatoli Stepanov/AFP/Getty ImagesThis article is for subscribers only.
The European stock rally is overheating and is due for a pause as investors have gotten overly optimistic about a potential ceasefire in Ukraine.
The end of the war was always a wild card for European equity markets. Now investors are starting to prepare for this scenario, aggressively buying energy-intensive sectors and European laggards.