The European equity markets are anticipated to play catch-up and close on the particular valuations seen on the other side of the market across the Atlantic according to reports made by Barclays.
Several experts and analysts at the British bank anticipate that the European equity markets are ready to outmatch competition in the coming months because of the greater potential it currently holds as compared with U.S. stocks. As a consequence, Barclays has the overweight rating for European equities as well as underweight ratings in terms of U.S. equities. It is also quite possible that emerging markets will have overweight ratings.
With little less than three weeks remaining in the fiscal year, European equities are beginning to show relatively strong annual revaluations. The DAX was able to gain more or less 20 %, the Ibex 15 % and the FTSE 11 % respectively during this year. Yet U.S. equity indices have been relatively been more bullish with the S&P up to 26 % as with the Nasdaq rising up to 31 %.
Last week, equities on both sides of the Atlantic were moving past after strong employment data ignited optimism regarding the possibility of economic recovery which outweighed concerns regarding the Fed’s possible tapering this month.
In terms of technical analysis, major equity benchmark indices were able to come up with bullish candlesticks last week with prices closing of which it was able to match intraday highs and remained near all-time highs reaching as high as 1,813.55 points on the S&P 500 and 16,174.51 points on the Dow Jones respectively.
The inclination indubitably remains quite bullish and markets have still yet to show considerable corrections despite some highly-acclaimed fund managers having been warned of the mispricing of bubbles and assets.