Summary
- Euro area business climate indicators are gradually picking up, providing a positive backdrop for European markets.
- Slightly better growth, disinflation and imminent rate cuts paint a relatively positive environment for Euro equities.
- The ECB starting to cut rates could also have a positive effect on European small caps later on.
Actionable ideas
- European equities
The broadening of the rally in global equities provides an opportunity for European markets. Indeed, Europe offers an appealing complement to growth markets such as the US.
- European small cap equities
So far, the main segment of the European market to have taken advantage of the rally has been the large caps. With the ECB set to start cutting rates, European small caps could also benefit.
Key Dates
30 Apr Euro area April |
1 May US ISM Manufacturing Index |
3 May US Employment Situation Report |