The Malta Independent on Sunday
Sentiment Shattered Even as Europe Stocks Erase Brexit Loss
European stocks have bounced back from Britain’s vote to leave the European Union. The same cannot be said for investor sentiment.
The Stoxx Europe 600 Index needed seven weeks to recover after the Brexit referendum result that triggered its biggest slump since 2008, much longer than shares in the U.S., Asia and even the U.K.
While recent economic data have beaten forecasts and financial results at companies including Munich Re and LVMH Moet Hennessy Louis Vuitton SE have topped projections, investors have been shunning Europe’s equities, with funds tracking the shares seeing outflows for 26 straight weeks. This month, volume in shares of Stoxx 600 companies was about 13 percent lower than this year’s average.
Oil is heading for its biggest weekly advance since April after Saudi Arabia signaled it’s prepared to discuss stabilizing markets at informal OPEC talks next month after prices tumbled into a bear market. Oil has fluctuated after falling more than 20 percent into a bear market and closing below $40 a barrel last week for the first time in almost four months.
The Stoxx Europe 600 Index rose 1.6 percent this week to its highest level since May. Hong Kong’s Hang Seng Index climbed 0.9 percent to a nine-month high. CK Hutchison Holdings Ltd. rose 2.6 percent and China Mobile Ltd. advanced for a second day after their earnings beat estimates.