Santander Corporate & Investment | The strong funds outflow from European equities in recent years and the severe relative bad behavior of European markets vis-à-vis American ones has begun to attract the attention of some non-European investors.
While it is true that these non-European investors seem to be waiting for greater visibility on some of the global issues, the slight positioning in European equities and the potential for cyclical recovery in 2020 of some European economies (mainly, Germany) they seem sufficient reasons to favor at least some capital inflow in the first part of 2020.
Unforeseen risks for 2020
Although most investors seem to be applying strategies to get out of the way, some are still concerned that the main risks are not fully discounted. The increase in corporate debt in the US, a deterioration of the political scenario in Europe, a recession in the services sector in the US conditioned by the prolonged recession in the manufacturing sector, an escalation of the global trade conflict and a complicated Brexit are possible unforeseen risks for 2020