Goldman Sachs specialists forecast very positive European equities, and it is because investors indicate that European earnings and rates will surpass the performance of the U.S. stock market. Goldman Sachs strategy director in London, Christian Mueller – Glissmann, assures that specifically, in the case of the Euro Stoxx 600 stock index, it’ll rise to a valuable percentage of eight percent profit in 2017, doubling the profits of S & P 500, which experts estimate at four percent.
Mueller – Glissmann says the factors that will boost the European stock exchange are the weakness of the euro, the rising oil prices and global growth, this is all after everything clears out regarding the upcoming elections, as there are still many questions unanswered.
The expert says that although the actions and the United States stock market will grow, these won’t outweigh the European exchange growth. The director based his predictions upon the fact that the American economy is based on measures of reduced taxes and tax expenditures, however, these could be lowered during 2017, so Europe would be definitely surpassing the United States on trading.
In addition, specialists point out that both the rise and fall that have presented the U.S. indexes are deeply related to politics, as the President of the United States are now in the hands of the entrepreneur Donald Trump, along with the promises made during his election campaign.
As the President took office and started implementing actions which impact on global economy, the U.S., together with the main stock market indexes which are references for most countries, have been plummeting, so Goldman Sachs predictions would be quite clear and have great chances of being right.
Although specialists dictate decreases in earnings for United States, the measures implemented recently by Donald Trump, such as banning the entry of Muslims from seven countries to that territory has played against the US economy, since political leaders, major companies and global organizations have turned their backs on that country in rejection of the controversial decree that prevents the arrival of immigrants to the United States for at least 120 days and indefinitely to the Syrian people.
The Chancellor of Germany, Angela Merkel, pointed out that the fight against terrorism doesn’t justify at all going against all Muslims just because of their home country since this leads to labeling them in spite of not being involved in criminal activities. She also stated that they will take measures to protect Muslims human rights.
If things remain the same, not only the European exchange will rise, but rather United States stock exchange may suffer irreparable losses.