A Week of Risk for European Stocks
- By Henry Occleston
- 4 min read
Summary
- European stocks will face substantial risk events this week from Russian gas supply, ECB policy, and Italian politics.
- All could drive sharp moves in equity indices. Right now, equity volatility is elevated, but not extreme, especially considering the potential fallout from such events.
Market Implications
- While we are strategically bullish European Banking, we see value in paring this exposure until there is some clarity on event risk, and then consider re-entering.
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