Europe continues to receive the market’s favour - Westpac

In view of analysts at Westpac Europe continues to receive the market’s favour, both relative to the US and in an absolute sense given the continued underlying strength of its economy.

Key Quotes

“The ECB Bank Lending Survey suggests that the investment uptrend is building as banks become more willing to lend and firms increasingly look to expand capacity. While risks are skewed to the upside overall, the potential dampening impact of the recent appreciation of the Euro must be kept in mind. In the UK, a brief period of concern regarding inflation and a potential rate hike looks to have ended. For the UK, risks are clearly skewed to the downside.”