“Investors are losing faith in Europe,” says Manish Kabra, of Bank of America Merill Lynch. Germany’s DAX index has lost 10% from its recent high. Italy’s main market is down 9%; the French CAC 40, down 15%.
Worries over Ukraine have been one factor. But the key problem is an old one: Europe “produces no growth”, says Didier Saint-Georges of fund group Carmignac.
The eurozone’s recovery seems to have ground to a halt. After growing by 0.7% in the first quarter of 2014, GDP was flat in the second. For once, it wasn’t the troubled ‘periphery’ causing the [...]