Signs Of Life For European earnings After Half Decade Of Stagnation: Barclays

Don’t get overly concerned with politics, a Barclays report advised, European equities are likely to move higher based on earnings. Assuming no EU political risk in 2017 -- a significant assumption -- its time to dive into EU stocks, the January 3 report said, as earnings will trump elections as heretofore illusive inflation is expected to enter the market environment.

European equities have depressingly diverged from their US counterparts

In the wake of the 2008 global financial crisis, a correlation divergence occurred that has Barclays Macro Strategy investment research team “depressed.”  In a report titled “Earnings over Elections,” the investment bank benchmarks the point at which US corporate earnings began to move...