Sinking Dollar Could Hit European Stock Market’s Darlings
This article is for subscribers only.
A wide disparity in performance between European equity sectors this year may be reduced because of the weakening U.S. dollar.
Many of this year’s best-performing subgroups -- think technology, chemicals and health care -- include companies selling most outside the region, and liable to see their sales translate to fewer euros. And with investors saying more gains may well be ahead for the currency after a 12% jump in just five months since the start of coronavirus lockdowns, the prospect increases of laggards such as lenders starting to catch up.