Global Investors Drawn to European Stocks as U.S. Interest Rates Rise
Global investors are increasingly looking to European markets for better returns as U.S. stocks become less attractive due to the prospect of higher interest rates. Analysis shows that equity investors from around the world have been drawn to Europe’s financials-heavy stock market, which is seen as offering more value than its American counterpart, weighed down by expensive technology stocks.
The growing signs of long-term higher interest rates in the U.S., combined with a strong euro and an improving economic outlook across Europe have made investing in European equities much more appealing for global investors seeking high returns on their investments. This shift toward European markets has been further bolstered by increased investor confidence following recent positive data releases from Germany and France showing stronger-than-expected growth figures for both countries’ economies this year so far.
Overall, it appears that global equity investors are turning away from expensive tech stocks in America and instead favoring financially focused companies listed on European exchanges due to their potential for greater gains over time despite rising interest rates stateside – something that could be beneficial not only to those investing but also local economies within Europe if these trends continue into 2020 and beyond.Read more at Reuters