European Stocks Pull Back Amid Geopolitical Jitters: Next Steps

Feb. 28, 2022 7:50 PM ET, , , , , , , , , , , , , , , , , , , , , , , , , , , 1 Comment
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Summary

  • Valuation/sentiment reset make the case for an overweight to the Eurozone markets.
  • Even on a sector-neutral valuation approach, European stocks are cheap vs. the US.
  • Bearish risks include wavering earnings revision momentum, an uncomfortably hot inflation surprise gauge, and of course geopolitics.
Planet Earth At Night - City Lights of Europe Glowing In The Dark

DKosig/iStock via Getty Images

European equities had one of their best days since May 2020 on Friday. The region surged 3% as global stock markets recovered from sharp losses earlier in the week. At the morning lows on Thursday, Vanguard FTSE Europe ETF (

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FEZ--
SPDR® EURO STOXX 50 ETF
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iShares Europe ETF
EZU--
iShares MSCI Eurozone ETF
DFE--
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