European shares continue to underperform US markets.

The performance spread between SP500 and Eurostoxx50 is around 15% year to date in favour SP500. The main culprits for poor returns in europe are poor performances of Italy (FTSE MIB down 25%/ big impact of financial sector ) and Portugal down 16%. On the sector side, Stoxx 600 Insurance is down nearly 20%, Stoxx 600 Automobile and Stoxx 600 Telecoms are both down more than 16% .

With higher rates in US and weakening EUR around the corner we should attend a catch up of European markets vs US in the next months . The abovementionned underperformers will have a good chance to perform well on a relative basis. We will keep you informed.