Sector view: The European stocks facing currency headwinds

Political risk is reduced following elections

For the first time in a decade, the prospects of Europe improving appears consensual, writes David Moss of BMO Global Asset Management.

With political risk (for now, at least) much reduced following Emmanuel Macron's French election victory and economic data and surveys (such as the PMIs) showing continued improvement, this is not surprising.  Coupled with growing concerns on the US, the result has been euro strength and strong performances from the periphery. The outcome is reasonable performance, but looking at how sectors have performed is interesting.  MSCI: European equity indices outpace Asian rivals in September Food and beverage companies are viewed as high quality businesses and it is no surprise therefore...