Rally in European Stocks Looks Most Stretched in Over a Decade
Warning signs are flashing in European stocks that a rally fueled by optimism about earnings and the economy is running out of road.
An indicator showing that European stocks are overbought is the strongest it’s been for a decade. Spectacular outperformance by the Stoxx Europe 600 index last year has extended into January, triggering signs the market may have got ahead of itself.