by Investec Switzerland. European shares declined for a sixth day as investors fretted over global growth prospects. © Audiohead | Dreamstime.com For European investors trying to assess just how bad sentiment is right now, consider this: the last time stocks were this low, the region had just suffered its longest-ever recession and corporate profits were about to shrink a third year. Signs of an improving economy haven’t deterred bears from punishing the Euro Stoxx 50 Index in a global rout, sending it to its lowest close since September 2013. Concerns ranging from oil to bad loans held by Italian banks have cast a shadow on the region’s recovery, with European stocks failing to lure bargain hunters even though they trade at their biggest discount in more than a year relative to U.S. shares. The pessimism is a far cry from where we were at the start of the year. What’s happened since the start of the new year are a deepening oil rout, intensifying concern over China’s slowdown and growing worries about the region’s lenders — the biggest decliners this year. Deutsche Bank AG, which posted its first annual loss since 2008, has plunged to a record, while Italy’s Banca Monte dei Paschi di Siena SpA has tumbled 58 percent. The lender is seeking a buyer to shore up its finances and reported a quarterly loss.
Topics:
Investec considers the following as important: Bank stocks, Business & Economy, Editor's Choice, European shares, Investec Switzerland
This could be interesting, too:
Investec writes Migration between Swiss cantons – gainers and losers
Investec writes Commission wants to postpone pension hike funding question
Investec writes Swiss house prices fall in the first quarter of 2024
Investec writes Inflation returns to Switzerland in April
European shares declined for a sixth day as investors fretted over global growth prospects.
© Audiohead | Dreamstime.com
For European investors trying to assess just how bad sentiment is right now, consider this: the last time stocks were this low, the region had just suffered its longest-ever recession and corporate profits were about to shrink a third year. Signs of an improving economy haven’t deterred bears from punishing the Euro Stoxx 50 Index in a global rout, sending it to its lowest close since September 2013. Concerns ranging from oil to bad loans held by Italian banks have cast a shadow on the region’s recovery, with European stocks failing to lure bargain hunters even though they trade at their biggest discount in more than a year relative to U.S. shares. The pessimism is a far cry from where we were at the start of the year. What’s happened since the start of the new year are a deepening oil rout, intensifying concern over China’s slowdown and growing worries about the region’s lenders — the biggest decliners this year. Deutsche Bank AG, which posted its first annual loss since 2008, has plunged to a record, while Italy’s Banca Monte dei Paschi di Siena SpA has tumbled 58 percent. The lender is seeking a buyer to shore up its finances and reported a quarterly loss.
By Bloomberg News (Bloomberg)