Turkish stocks are undoubtedly cheap, and very brave bargain-hunters may spy opportunity, but this market is cheap for a very good reason.
Emerging Europe is having tough time. Regional year-on-year GDP growth slowed to 1.3% in the fourth quarter, and the MSCI Eastern Europe index slipped by 5% last year.
Germany’s benchmark index, the DAX-30, fell further than most other major markets in 2018. One problem is a downturn in Germany. The other is the slowdown in global growth.
From buying Brazil to apocalyptic solar flares and the notion of a European debt jubilee, John Stepek looks at some of the more outlandish calls analysts are making for 2019.
Now that the European Central Bank is to stop buying government debt, and growth is slowing, concern over the sustainability of the single currency area is flaring up again.
The “yellow vests” riots in France have met with a typically Gallic shrug from the country’s stockmarket. That’s very telling indeed, says Dominic Frisby.
Compared with US shares, European stocks haven’t been as cheap as they are now in a long time.
Hungary’s authoritarian leader Victor Orban is widely reviled. But the country’s economy and equities look inviting.
Around $50bn worth of equity investment has flowed out of the eurozone since January. But sellers have been harsh and Europe may offer a decent bet for 2019.
Poland’s transition from emerging market to developed status bodes well for its stocks, says Matthew Lynn.
Professional investor Francesco Conte picks three outstanding small European companies to buy now.