In today’s world, value is one of the most significant factors in determining the success of foreign investments. Financial gurus and consultants have been advising traders and investors to invest a portion of their portfolio in overseas stocks to reduce risk for years. This advice is particularly crucial now, because European nations are rebounding from the Covid-19 more quickly than the United States.
At the same time, Europe is expected to have a stronger GDP rebound, with growth of 6%. The US, on the other hand, is expected to expand at a rate of 5%. Another reason to invest in European assets currently is the US dollar’s weakening, which makes European stocks more appealing. More prospects are looking into the best European stocks to buy for 2021 following the recent showings, where growth is expected to rise even further. While the US dollar might not remain weak for long, investing now will certainly have its advantages.
With a ninth straight positive session, the pan-European STOXX 600 index rose 0.2 percent to a new high of 459.86 points, marking the longest winning streak in three and a half years.
The best-performing sectors were travel and leisure, chemical stocks, and utilities, as investors relied on an increase in the consumption and industrial production.
However, when Spain’s competition authority began an inquiry into suspected anti-competitive activities in the marketing of state-backed coronavirus loans, banks lost 0.9 per cent due to stock price losses in Banco Sabadell, Santander, and Caixabank.
The Spanish stock exchange fell 0.3 per cent on the day, behind its regional rivals.
With a regular immunization program expected to stimulate regional economic development, the benchmark STOXX 600 index has already gained for five weeks in a row. However, recent inflationary pressures have raised fears of a faster-than-expected tightening of global monetary policy.
Following the European Central Bank‘s dovish hints last week, the Fed is poised to at least mark the start of discussions on when and how to withdraw measures put in place at the start of the COVID-19 epidemic.
“The Fed is expected to leave policy unchanged and again play down taper talk. Nonetheless, markets will be looking for hints on whether the Fed is starting to acknowledge that inflation may not be as transitory as thought,” analysts at ING said in a report.
Travel and leisure companies surged 1.3 per cent in Europe following a sharp drop on Tuesday, while utilities gained 1%.
Even as statistics showed British inflation unexpectedly went beyond the Bank of England’s 2.0 per cent target in May and appeared likely to climb further as the country’s economy reopened from lockdowns, London’s FTSE 100 gained 0.2 per cent. [.L]
After a poor earnings estimate from U.S. software competitor Oracle Corp., shares of German software powerhouse SAP dropped 1.2 per cent, dragging on the DAX.
Solarpack, a Spanish solar power provider, jumped 43 per cent after it announced a buyout proposal from Swedish firm EQT worth up to 881.2 million euros ($1.07 billion).
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