Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


Europe To Outperform The US In 2005


Europe To Outperform The US In 2005

Leading investment manager Arcus expects European sharemarkets to show strong gains this year.

In its Quarterly Investment Review for clients of Spicers Wealth Management, Arcus sees sharemarkets in the United States taking stock after two years of exceptionally strong growth.

Arcus Chief Investment Officer Mark Brighouse says there will be significant shifts in the United States as financial services face competition with investment flowing back to manufacturing.

“While the recent strong growth in markets may not be sustained, we believe that future returns in the US will remain positive.”

Mr Brighouse says Europe appears to be in the early stages of a recovery.

“European equity markets suffered more than others in 2002 and early 2003 and are still more attractive on valuation measures than the US market. It is likely that corporate earnings growth rates for European countries will be higher than for US companies during 2005.”

Mr Brighouse says telcommunications and pharmaceuticals are the attractive sectors in the UK market.

While questions still hang over the Japanese market, Mr Brighouse says there is evidence from leading indicators that the slowdown late last year was a temporary weakness in four years of otherwise positive growth.

Elsewhere, emerging markets are experiencing strong growth, especially those whose exchange rate is pegged to the dollar, driven by strong demand from China.

Closer to home, Mr Brighouse sees Australia outperforming New Zealand.

“The Australian sharemarket has not experienced the same degree of multiple expansion as New Zealand and is beginning to look more attractive.”


© Scoop Media

Business Headlines | Sci-Tech Headlines


Voluntary Administration: Renaissance Brewing Up For Sale

Renaissance Brewing, the first local company to raise capital through equity crowdfunding, is up for sale after cash flow woes and product management issues led to the appointment of voluntary administrators. More>>


Approval: Northern Corridor Decision Released

The approval gives the green light to construction of the last link of Auckland’s Western Ring Route, providing an alternative route from South Auckland to the North Shore. More>>


Media Mega Merger: Full Steam Ahead For Appeal

New Zealand's two largest news publishers have confirmed they are committed to pursuing their appeal against the Commerce Commission's rejection of the proposal to merge their operations. More>>

Crown Accounts: $4.1 Billion Surplus

The New Zealand Government has achieved its third fiscal surplus in a row with the Crown accounts for the year ended 30 June 2017 showing an OBEGAL surplus of $4.1 billion, $2.2 billion stronger than last year, Finance Minister Steven Joyce says. More>>


Mycoplasma Bovis: One New Property Tests Positive

The newly identified property... was already under a Restricted Place notice under the Biosecurity Act. More>>

Accounting Scandal: Suspension Of Fuji Xerox From All-Of-Government Contract

General Manager of New Zealand Government Procurement John Ivil says, “FXNZ has been formally suspended from the Print Technology and Associated Services (PTAS) contract and terminated from the Office Supplies contract.” More>>