Technological downturn is not a problem for Europe
European stocks maintain confidence at the start of the new year. Despite the mixed behavior on Wall Street yesterday and initially warmer tones, European indices remain higher today. That spreads the positive tone from the start of the year beyond, at least for now.
Eurostocks 50 + 0.4%
YEM DAX + 0.6%
France CAC 40 + 0.5%
UK FTSE + 0.2%
Spain IBEX + 0.1%
It is worth noting that the CAC 40 is already up about 3% during the week, hitting an all-time high.
The issues with tech stocks don’t really affect European indices, which tend more towards value stocks. In a year when growth margins may slacken, Europe may see stellar performance once again. But it’s still early days and who knows what will be the next turn in the pandemic/inflation saga.
Looking at the other direction today, S&P 500 futures are down 0.1%, Nasdaq futures are down 0.4%, while Dow futures are flat.
Weak tones in tech stocks are largely insulated at the moment, but if they taper off further, it could lower risk sentiment and spoil the good mood in European stocks as well. So you have to take it into account.
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