Tag Archives: Europe

Three reasons why market capitulation may be over

The return of inflation has taken a lot of people by surprise, although it should not have done. Worryingly, even central banks have acted quite surprised by the abrupt rise in prices, when they should have expected it.

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Watch commercial banks’ interest rates for clues on the future

While all eyes are on what central banks will do with interest rates, consumers and investors alike should really worry about what commercial banks will do.

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Beware value traps when hunting for stock market bargains

European stock markets recouped all the ground lost since the February 24 Russian invasion of Ukraine, but investor optimism may be misplaced.

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European assets: overbought or oversold?

Will 2022 be the year when the tide goes out in Europe’s financial markets? Many commentators now say it will, and point to the large sums of cash that have gone into stocks, bonds and other financial assets in the past.

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Four reasons why the stockmarket rally is not over

Those who worry that the extraordinary stock market rally will come to an end in 2022 may be worrying too soon: equities could still power ahead, and particularly so in Europe.

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Three potentially positive effects of inflation

Inflation is here to stay, rather than transitory, no matter what central banks are telling us. But rising inflation could help make the global economy more efficient. Here are three potentially positive consequences of high inflation:

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Why the ECB is in no hurry to fight inflation

The euro has lost a lot of ground versus other major currencies as the European Central Bank (ECB) is taking a very dovish stance even compared to the usually dovish Bank of England.

As expected, a German has the difficult task of being a lone hawk amid doves: Isabel Schnabel, member of the ECB’s Governing Board, recently warned that the central bank has consistently been wrong in its inflation forecasts.  

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Come on, Europe: wir schaffen das

There are moments in politics and policy that change the course of history; when they can be summarised in three words, they are the best.

Mario Draghi’s statement back in 2012 that the European Central Bank will do “whatever it takes” to save the euro was such a moment: from then on, the speculators’ attack on weaker eurozone members’ sovereign debt stopped.

Another such moment came three years later, when in 2015 German chancellor Angela Merkel allowed one million refugees to enter Germany. “Wir schaffen das” (we can manage this), she said.

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Fuel shortages mark the beginning of Brexit woes

The queues for petrol in the UK are perhaps the most important post-Brexit moment for Boris Johnson and for those who followed his advice and voted to leave the European Union.

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Italy tourism season is crucial for post-Covid recovery

The fact that Italy was the first European country to be hit hard by the Covid-19 pandemic seems a distant memory. Will Italy now be the first in the European Union to stage a spectacular recovery?

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