Norton Global Believe Europe Will Outperform the U.S.
Alexandra,
Singapore, November 27, 2015 (Newswire.com)
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Norton Global Asset Management Hong Kong Based Provider of Asset Management Services analysts are setting their stall out to invest in particular assets over on the continent as they believe there will be good returns there if the predicted interest rate changes in the U.S. and Europe transpire.
Norton Global forecast that the ECB (European Central Bank) will be looking to counteract potential downside risks to inflation at a meeting that is scheduled for December. The ECB is also likely to prolong its quantitative easing (QE 1 trillion euro ($1.1 trillion) program as hinted at by ECB President Mario Draghi all the way till the beginning of the fourth quarter in 2017.
With the U.S. Federal Reserve expected to make its first increase in 9 years to its benchmark rate during its 3rd of December meeting and the ECB going in the opposite direction the likely effect is a stronger dollar due to anticipated higher returns in the U.S. History has a habit of repeating itself and previous diverging monetary policies have resulted in European equities regularly beating their U.S. counterparts, this situation becomes even more distinct after a year has passed since the Fed’s first rate increase.
The ECB is currently buying assets at around 60 billion euros monthly with a firm commitment to continue until at least September next year, this may well be increased as anticipated and announced at their December meeting.
Norton’s senior analyst said “European equities are very likely to outperform U.S. equities as a weak euro will bolster the European equities market”.