Eurozone equities have had a bad start to 2016, underperforming their global peers. The combination of a steep sell-off in global risk assets and a strong euro were to blame.
Looking ahead, we expect markets to shift their attention back to the fundamentals and those still look good. Valuations are attractive, the economic recovery continues and monetary policy is very loose. Equities across the eurozone have a tendency to underperform in global sell-offs. This unfortunate characteristic is the result of eurozone companies being very global with relatively large exposures to growth sensitive sectors. So, whenever financial markets worry about global growth slowing down, eurozone equities get beaten down regardless of their fundamental outlook. Of course...
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