Investors don't seem to understand the importance of China's economy for European stocks, particularly for Germany and Northern Europe, according to Philip Saunders, co-head of multi-asset at Investec Asset Management.
div > div.group > p:first-child"> Speaking to CNBC's"Squawk Box" on Wednesday, Saunders said that Chinese demand has"been a very significant driver of growth" for those shares over the last few years. And, when that demand slips, it's led to declines.
As a result of such policies, which are set to boost growth, Saunders expressed confidence that the"very unloved" European equity markets might well"be a significant beneficiary" of that change. Still, Saunders said, not all European equities are necessarily going to rise after Chinese domestic stimulus kicks in. Rather, companies with direct links to demand in China will be poised to benefit the most, he added.
Malaysia Latest News, Malaysia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
‘Oblivious’ stock investors aren’t ready for what’s next, hedge-fund manager warnsInvesting in passive index funds has enjoyed a stellar run over the past 10 years, exposing the shortcomings of taking the active approach in a market where everything is in full-on rally mode.There’s a sense out there, however, that, as markets get all twisted up in economic and political turmoil, we might see an active renaissance.
Read more »
Caterpillar's double downgrade is 'excessive,' don't run away from the stock, expert saysCaterpillar just got bulldozed by a double downgrade from UBS. One expert disagrees with the call.
Read more »
Activist Investor Claims Insurer’s CEO Uses Company Assets to Support LifestyleVoce Capital says Argo Group’s board is letting its chief executive misuse company assets on jet trips, designer office chairs and other expenses. The investor plans to launch a proxy fight against the company, which says its performance remains strong.
Read more »
Investors Signal Strong Displeasure With Metro Bank's Asset MisclassificationMetro Bank's stock price plunging over 20% on Tuesday was evidence of investors' concern about the UK regulatory investigation of the bank's misclassification of risk-weights for mortgage loans. Regulators and the market should be watching the bank's capital and liquidity levels closely.
Read more »