Equity questions behind Europe's recovery
Article Abstract:
There is hope that economic growth could pick up in mainland Europe as business confidence improves, and interest rates and the value of the euro currency fall. A reduction in excess inventories should also help growth. A rise in growth could bring inflationary pressures which could hit stock markets, while Asian economic recovery could lead to bond sales and sales of US equities, leading to a drop in European stock prices. There is a debate as to how far inflation represents a danger to stock prices. Improved earnings expectations may also help stock prices.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1999
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Europe: new austerity
Article Abstract:
European fiscal policy has been tighter in order for national economies to meet criteria in the Maastricht agreement, and this has affected demand. Economic growth levels have been disappointing, with James Capel forecasting a 2% rise in gross domestic product (GDP) for 1996. This could be as low as 1.6% for France, and 1.7% for Germany. The French franc may also fall, which would allow interest rates in Germany to be reduced. Looser monetary policy should help boost growth in 1997.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1996
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Europe: growth surprise
Article Abstract:
European economic growth should benefit from a rise in exports and recover in 1997, according to Paribas Capital Markets. Exports to the US and some Asian countries should increase. The level of unsold inventories is also decreasing in Europe and this should remove a barrier to growth. European interest rates are low in real terms so monetary policy should encourage growth. Fiscal tightening could end in 1998 and economic growth may accelerate in that year.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1996
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