European Stocks Trade At 32% Discount To US Equities: Barclays

With European stock markets trading at a 32% discount to the U.S., a March 21st report from Barclays suggests European valuations appear heavily discounted.

Barclays PLC (NYSE:BCS) analysts Ian Scott and colleagues also note valuations in emerging markets are low and their earnings are tightly linked to exports.

Bullish sentiment in global equities

The Barclays’ analysts point out that despite fears of a slowdown in China, political tensions in Ukraine and Fed tapering, stocks have been relatively resilient. The analysts believe global equities could rise further in 2014, though the outlook is complicated by the risk of a correction. They believe the bullish sentiment remains in place. They point out that the number of bears responding to the Investors Intelligence Survey is still...