Bloomberg: Uneasy Traders In Euro Stoxx Options
By Roxana Zega
(Bloomberg) — The flood of money pouring into European stocks belies an undercurrent of unease.
While the equities are enjoying their best start to a year since 1997 and investors have poured $4.7 billion in an exchange-traded fund tracking them, the number of bearish Euro Stoxx 50 Index options has climbed to the highest level since before the financial crisis relative to bullish ones.
European Central Bank stimulus and optimism a weaker euro will help exporters have trumped concern that Greece may exit the currency bloc and roil markets. Yet, UBS Group AG?s global asset allocation strategist sees little scope for more gains in the near term, with the Greek debt talks lingering until at least June, based on the latest agreement.
?The upside over the next three months is very limited,? said Ramin Nakisa, global asset allocation strategist at UBS in London. ?We wouldn?t be confident investing in Europe stocks while the Greek situation remains unresolved.?
The Euro Stoxx 50 advanced 0.8 percent on Monday after Greece?s creditors agreed on Feb. 20 to extend bailout funds for four months. The nation has until the end of the day to submit a list of economic measures it will undertake in return for the continued funding, and finance chiefs will then decide whether Greece?s proposals go far enough.
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