European equity sentiment in freefall
Appetite for European equity has cooled down significantly. Already before the British vote for Brexit, the asset class had fewer fans than at any point in the past five years.
ANNOUNCEMENT: Expert Investor is now PA Europe. Read more.
Appetite for European equity has cooled down significantly. Already before the British vote for Brexit, the asset class had fewer fans than at any point in the past five years.
Europe’s share of the world economy may be declining steadily, but there is at least one area where the continent is growing in importance: asset management revenues. Global asset management companies are deriving an ever growing share of their revenue from Europe, at the expense of the United States.
The day after Roy Hodgson showed David Cameron a thing or two about how to resign rapidly when things have gone pear-shaped, the markets rowed back a little on their own quick reaction to an unexpected defeat.
European investors are sitting on large cash piles, and are waiting for volatility to ease a bit before hunting for opportunities.
In a joint statement on Friday, the EU leadership urged the UK to start departure procedures immediately as “any delay would unnecessarily prolong uncertainty”.
Markets were stunned into action on Friday morning after the UK voted narrowly to leave the European Union. Sterling slumped to its lowest level versus the dollar since 1985, safe haven assets jumped and the Nikkei fell almost 8%, while the FTSE opened 6.7% lower.
European fund buyers believe Britain will vote to remain in the European Union on Thursday. Investors from the Nordic countries are especially convinced the status quo will prevail.
With the Brexit referendum now less than a week away, it’s time to ask the question whether the risks associated with a Leave vote are now more or less priced in or whether it does still pay to hedge your exposure to European equities and sterling.
While investors reach for their hard hats ahead of the EU referendum, they should also prepare for potential bargains – whichever way the vote goes – on 24 June.
The five European equity funds that managed to finish top-quartile for the past three consecutive years do not have a great deal in common. But there’s one feature they (almost) all share.
The Leave campaign is somehow gaining momentum, making the outcome of the upcoming Brexit referendum increasingly uncertain. This uncertainty will have far-reaching market implications in the short term, as a Leave vote would likely shock global markets, Blackrock warned today.
Only slightly over 1% of European equity large cap funds have managed to consistently secure a top-quartile finish over the past three years, fresh research by Expert Investor reveals.