Equity questions behind Europe's recovery

Article Abstract:

There is hope that economic growth could pick up in mainland Europe as business confidence improves, and interest rates and the value of the euro currency fall. A reduction in excess inventories should also help growth. A rise in growth could bring inflationary pressures which could hit stock markets, while Asian economic recovery could lead to bond sales and sales of US equities, leading to a drop in European stock prices. There is a debate as to how far inflation represents a danger to stock prices. Improved earnings expectations may also help stock prices.

Prices, Interest Rates, Stock-exchange, Stock exchanges, Inflation (Finance), Inflation (Economics)

---

Europe: new austerity

Article Abstract:

European fiscal policy has been tighter in order for national economies to meet criteria in the Maastricht agreement, and this has affected demand. Economic growth levels have been disappointing, with James Capel forecasting a 2% rise in gross domestic product (GDP) for 1996. This could be as low as 1.6% for France, and 1.7% for Germany. The French franc may also fall, which would allow interest rates in Germany to be reduced. Looser monetary policy should help boost growth in 1997.

---

Europe: growth surprise

Article Abstract:

European economic growth should benefit from a rise in exports and recover in 1997, according to Paribas Capital Markets. Exports to the US and some Asian countries should increase. The level of unsold inventories is also decreasing in Europe and this should remove a barrier to growth. European interest rates are low in real terms so monetary policy should encourage growth. Fiscal tightening could end in 1998 and economic growth may accelerate in that year.

Gross Domestic Product

Similar abstracts:

• Abstracts: An invitation to Europe. European court levels tax playing field. Accountant MP warns on European tax danger
• Abstracts: Tough questions. Continuous change. Message in a hologram; properly functioning internal control systems can improve the viability of today's organizations and industries
• Abstracts: Privatization and foreign investment. Industry recovers from the Revolution. Romania starts to catch up
• Abstracts: Lessons of the bond yield curve. Unsustainable? US bonds: bond blues
• Abstracts: Why small is beautiful - sometimes. The looming return of cash calls

This website is not affiliated with document authors or copyright owners. This page is provided for informational purposes only. Unintentional errors are possible.