Report
Might capital return to the euro zone?
Sin ce the beginning of 2018, bond capital has been flowing out of the euro zone; since the second quarter of 2018, equity capital has been flowing out of the euro zone; since the summer of 2018, this has been the case of short-term capital also. As the euro zone has a large external surplus, this has had little impact on euro long-term interest rates or on the euro’s exchange rate. But these capital outflows do explain the weakness of the euro zone’s equity market, particularly compared with the US market. Might international capital return to the euro zone? We believe this is unlikely: Interest rates are going to remain much higher in the United States than in the euro zone; Growth is going to remain much lower in the euro zone than in the United States; Italy’s crisis is set to last and may turn off investors.
Provider
Natixis
Based across the world’s leading financial centers, Natixis CIB Research offers an integrated view of the markets. The team provides support to inform Natixis clients’ investment and hedging decisions across all asset classes.
Patrick Artus
Other Reports from Natixis
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.