Five Things You Need to Know to Start Your Day: Europe
Get up to speed with what the markets are monitoring
Good morning. European stocks may be falling behind US peers. Pimco is scouring emerging-market debt. And oil’s demand woes worsen. Here’s what people are talking about.
The promise of European stocks gaining an edge over their US counterparts is fading after a brief spell of outperformance, as concerns of an economic slowdown weigh on the outlook for earnings. Where Europe stood to gain from a shift away from big tech stocks, investors are instead turning to undervalued sectors of the US market. Their preference is driven by data showing the US economy’s resilience and expectations that the Federal Reserve would cut interest rates sooner and more aggressively than previously anticipated. On its own, the picture in Europe looks robust with the Stoxx 600 at a record high. Still, the gauge underperformed the S&P 500 in August. On an annual basis, too, the index has lagged by nearly 9 percentage points so far in 2024, a second straight year of underperformance.
See Mark’s outlook on US equities, below.