Investors snap up export-focused stocks as Draghi sounds euro alarm

European equity managers are rotating into quality stocks with global exposure as the European Central Bank (ECB) prepares to combat a buoyant euro.

The currency, which hit a two-and-a-half-year high against the dollar last week, has become an increasing source of frustration for export-led businesses. Philips, Adidas, Michelin, cement-maker Lafarge, and Airbus have all pointed to the strong euro as the main contributor to poor results in recent months. However, the situation is now changing. After the euro neared a symbolic $1.40 rate in early May, ECB president Mario Draghi’s initial attempts to bring down the currency appear to be working. Draghi said two weeks ago the strong currency was “a serious concern” and he indicated he...