Europe Stock Strategists 100% Bullish In Face of Greece Impasse
By Roxana Zega
Greece isn?t budging, and neither are Europe?s stock strategists.
Clashes between officials in the Mediterranean nation and its creditors are wreaking havoc on markets, yet none of the 15 forecasters tracked by Bloomberg lowered their year-end estimate for European indexes. All of them see gains. UBS Group AG even raised its projection this month, citing better-than-expected earnings growth and a turn in the economy.
With analysts projecting three straight years of earnings growth surpassing 10 percent and European Central Bank stimulus in force, equity forecasters view Greece jitters as temporary. A Bank of America Corp. survey showed the region is still favored among stock investors. Citigroup Inc., the most bullish firm, sees the Stoxx Europe 600 Index jumping 17 percent through the end of the year.
?Greece has no material impact on the European economy because it is so small,? said Christian Zogg, a fund manager who helps oversee about $10 billion at LLB Asset Management in Vaduz, Liechtenstein. ?The earnings momentum had just taken off before we had this correction from mid-April. We saw the first signs of the European economy benefiting from a lower euro, and there?s no reason they shouldn?t resume.?
The wrangling over Greece has helped drag the Euro Stoxx 50 Index down 10 percent from its high in April to a four-month low on Monday. The gauge was little changed on Wednesday as the focus turns to a meeting of finance ministers on Thursday and a June 25-26 summit of European Union leaders. Greece?s bailout package expires at the end of the month.