By Michael Msika, Bloomberg Markets Live reporter and strategist
European stocks may be unlikely to outperform the US in the long run, but the region is now showing resilience and has some tailwinds in its favor.
While the year is shaping up to be one of the worst on record for European equities relative to US peers, there’s been a bit of a turnaround lately. Over the past month the Stoxx 600 and the S&P 500 have been neck and neck, both rising 3%. Just as flows and positioning keep favoring US assets, Europe can claim a monetary policy differential, Chinese stimulus and broadening of the rally as positives for its market.
