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Article Abstract:
European equity prices could be affected by a change in the interest rate cycle, according to UBS Global Research. Rates in mainland Europe are likely to be raised in 1998 and bond markets will be affected. A delay in European monetary union would also affect equity prices. Germany, France and the Netherlands are among countries most likely to be affected by a drop in markets, with Switerland and the UK less likely to be affected. Financial stocks may be worse affected than utilities and other defensive stocks.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1997
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Article Abstract:
European equity markets have seen a drop in share prices which is linked to a change in interest rate policy, argues UBS Global Research. Rates are rising in the US and look set to rise in mainland Europe in 1998 as economic growth strengthens. Equities have been overvalued are this has yet to be corrected. There is also concern about European monetary union which could affect share prices. Prices could drop by between 5% and 10% with some markets such as France seen as especially vulnerable.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1997
User Contributions:
Comment about this article or add new information about this topic:
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Article Abstract:
World equity markets are likely to perform better than bonds or cash in 1998, according to Goldman Sachs. Earnings look set to increase, and mainland Europe is undergoing a recover, while US growth is strong. This should help offset slower Asian growth. Investors could, however, seek a higher risk premium for equities to offset their increased volatility. Tighter monetary policy could also hit equities, as could looser fiscal policy.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1997
User Contributions:
Comment about this article or add new information about this topic:
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