Europe’s Stock Market In for Pain If Euro Rally Nears $1.30
- Strategists, fund managers see pain level still far away
- Brisk demand for Europe assets seen offsetting currency impact
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A rare show of investor confidence in European unity is boosting the region’s stocks and currency at the same time, but equities’ good fortune could take a hit if the euro keeps climbing toward a pain threshold seen around $1.30, according to a Bloomberg survey.
There is still some way before the single currency could reach the level that will pose a threat to the region’s earnings recovery, according to the majority of the 24 strategists and fund managers polled. However, the euro’s rally to a two-year high just shy of $1.20 this month has brought it back on the radar of equity traders.