Favorable monetary policies out of the European Central Bank and and improving economic activity across the Eurozone could support Europe currency-hedged exchange traded fund strategies.
Political volatility in Europe, with elections looming in France, Germany and the Netherlands, is a factor investors need to be mindful of.
“Banks are among Goldman’s preferred sectors in Europe this year, as they benefit from a steeper yield curve. Investors can buy bank stocks to hedge their portfolios’ sensitivity to higher rates, Mueller-Glissmann said,” reports Bloomberg.
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