European stock markets, with better prospect that Wall Street – The Economist

The investment bank estimated that the DJStoxx600 will rise 8%, including dividends, and is committed to the financial sector.

there is Still a place for the european equity continue to grow. Photo File: AFP

The economic recovery and the rebound of oil prices will play in favour of the european bourse this year, according to Goldman Sachs, which predicts a better performance of the indexes of the old continent and that of Wall Street.

The investment bank, predicts that the DJStoxx600 will end this year around 380 points, 8% above the close of last year, while it predicts that the S&P 500 end of 2017 at around 2,300 points, which would close the year with an increase of 4 percent.

last Thursday, the Dow Jones industrial average surpassed the height of the 20,000 points for the first time in its history and the S&P 500 is trading too close to areas record.

High expectations

Goldman explains that currently Wall Street is traded at these levels for a few expectations too positive. "What’s that currently, it generates optimism in the united States are the tax cuts and fiscal spending, and these factors will be diluted over the next few months. On the contrary, the european stock exchanges have a few catalysts for stronger to behave well in the medium term," says Mueller-Glissmann, an analyst at the investment bank. And he thinks that the new u.s. government will find it difficult to fulfill all the promises made.

Goldman Sachs estimated that the export of the eu will benefit if Trump continues to promote a strong dollar and a weak euro, which will be reflected in their quotes.

In this context, Goldman Sachs recommended sobreponderar european shares and infraponderar the us-american market for a horizon of 12 months. Among its sectors of favorites includes banks.

the rebel

Businesses and investors begin to give back to the hasty and temperamental policies of Donald Trump, the new president of the united States.

After weeks on the rise and ignoring the uncertainty that could unleash the Administration Trump, Wall Street was caught up in the fears and signed its worst session so far this year.

Meanwhile, some of the managers of the most recognized in the country showed their rejection to the migration policies of Donald Trump.

Microsoft went beyond the rejection and announced that it is already working with the attorney general of the state of Washington, where he located his headquarters, in the demand that it is preparing to paralyze the decree of Trump prohibiting the entry of immigrants from seven arab countries, according to Reuters.

The giant computer he stressed that it is providing to the justice information about the impact of the measure on the workers and that he will be "happy to testify if necessary", said the spokesperson of the company, Pete Wootton, in a statement.

For his part, the director-general of Ford, Mark Fields, and its chairman, Bill Ford, signed a press release in which it revealed its rejection of the policy of Trump and where supported the promotion of values such as "respect and inclusion".

The president of Nike, Mark Parker, stated that the values of diversity "are being threatened by the executive order on EU, prohibiting the entry of refugees, as well as tourists from seven countries, mostly muslim. This is a policy that we do not support".