European assets bounce as the eurozone's economy turns upwards
Both the euro and European stocks have rallied strongly in the last few days.

The euro has been enjoying its longest rally since 2011, gaining 4.5% against the dollar since the end of May and eclipsing $1.1384 to the greenback. And European stocks have started to outperform US markets in the past few days.
Chalk it all up to better news. The continent has endured a painful slump, with the European Central Bank (ECB) forecasting an 8.7% fall in eurozone GDP this year. Yet things are on the mend,says Morgan Stanley. Purchasing manager indices and gauges of mobility and electricity usage suggest that the economy hit a trough in April. “The recovery is already under way.”
Long criticised for its frugal budgets, Berlin has rushed to the rescue on this occasion. Emergency measures to guarantee loans, cut taxes and boost electric-car uptake amount to €1.3trn, more than 35% of GDP. A generational shift has made German officials more pragmatic about borrowing than in past crises, says Derek Scally in The Irish Times. The European Central Bank also cheered markets last week by unveiling an expansion of its quantitative easing programme, whereby it buys bonds with printed money, from €750bn to €1.35trn. The move ensures continued downward pressure on financing costs for European businesses, says Jim Armitage in the Evening Standard.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
The Franco-German plan to launch a common €750bn European bond also underpins the rally, says John Authers on Bloomberg. Markets hope that this step towards fiscal union will deliver a “Hamiltonian moment”, akin to the US federal government’s 1790 assumption of state debts. Common debts may ultimately pave the way for more EU-wide tax-raising powers, a crucial plank of genuine fiscal union. This crisis could prove a “historic moment in the European project”.
Sign up for MoneyWeek's newsletters
Get the latest financial news, insights and expert analysis from our award-winning MoneyWeek team, to help you understand what really matters when it comes to your finances.
Alex is an investment writer who has been contributing to MoneyWeek since 2015. He has been the magazine’s markets editor since 2019.
Alex has a passion for demystifying the often arcane world of finance for a general readership. While financial media tends to focus compulsively on the latest trend, the best opportunities can lie forgotten elsewhere.
He is especially interested in European equities – where his fluent French helps him to cover the continent’s largest bourse – and emerging markets, where his experience living in Beijing, and conversational Chinese, prove useful.
Hailing from Leeds, he studied Philosophy, Politics and Economics at the University of Oxford. He also holds a Master of Public Health from the University of Manchester.
-
Five years on: what did Covid cost us?
We’re still counting the costs of the global coronavirus pandemic – and governments’ responses. What did we learn?
By Simon Wilson Published
-
New tax year changes: how much will you have to pay in 2025/26?
The new tax year will start on 6 April, 2025. We look at how taxes and allowances are changing and how they will affect you.
By Holly Thomas Published
-
Halifax: House price slump continues as prices slide for the sixth consecutive month
UK house prices fell again in September as buyers returned, but the slowdown was not as fast as anticipated, latest Halifax data shows. Where are house prices falling the most?
By Kalpana Fitzpatrick Published
-
Rents hit a record high - but is the opportunity for buy-to-let investors still strong?
UK rent prices have hit a record high with the average hitting over £1,200 a month says Rightmove. Are there still opportunities in buy-to-let?
By Marc Shoffman Published
-
Pension savers turn to gold investments
Investors are racing to buy gold to protect their pensions from a stock market correction and high inflation, experts say
By Ruth Emery Published
-
Where to find the best returns from student accommodation
Student accommodation can be a lucrative investment if you know where to look.
By Marc Shoffman Published
-
The world’s best bargain stocks
Searching for bargain stocks with Alec Cutler of the Orbis Global Balanced Fund, who tells Andrew Van Sickle which sectors are being overlooked.
By Andrew Van Sickle Published
-
Revealed: the cheapest cities to own a home in Britain
New research reveals the cheapest cities to own a home, taking account of mortgage payments, utility bills and council tax
By Ruth Emery Published
-
UK recession: How to protect your portfolio
As the UK recession is confirmed, we look at ways to protect your wealth.
By Henry Sandercock Last updated
-
Buy-to-let returns fall 59% amid higher mortgage rates
Buy-to-let returns are slumping as the cost of borrowing spirals.
By Pedro Gonçalves Published