Europe’s stockmarket rally looks set to endure

An encouraging economic backdrop suggests Europe’s stockmarket rally will continue.

"Remember those 14-year highs" in the dollar index? "No, nor does anyone else," says Katie Martin in the Financial Times. Soggy inflation in the US has put back the expected timetable of further US interest-rate hikes, and Donald Trump's inability to get anything done has also tempered enthusiasm for the greenback. The talk of the forex market is now the euro. It has climbed to a two-year peak against the US dollar. The euro index, which tracks it against a basket of trading partners' currencies, is also at a two-year high.

Could the euro dent the European stockmarket rally? The eurozone relies more on exports than Britain or America, which are relatively closed economies, so a higher euro could undermine growth by making exports more expensive and will also reduce the value of foreign earnings. But the currency jitters look overdone.

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Andrew Van Sickle
Editor, MoneyWeek

Andrew is the editor of MoneyWeek magazine. He grew up in Vienna and studied at the University of St Andrews, where he gained a first-class MA in geography & international relations.

After graduating he began to contribute to the foreign page of The Week and soon afterwards joined MoneyWeek at its inception in October 2000. He helped Merryn Somerset Webb establish it as Britain’s best-selling financial magazine, contributing to every section of the publication and specialising in macroeconomics and stockmarkets, before going part-time.

His freelance projects have included a 2009 relaunch of The Pharma Letter, where he covered corporate news and political developments in the German pharmaceuticals market for two years, and a multiyear stint as deputy editor of the Barclays account at Redwood, a marketing agency.

Andrew has been editing MoneyWeek since 2018, and continues to specialise in investment and news in German-speaking countries owing to his fluent command of the language.