Italian Banks Bigger Threat to European Stocks than Politics

Political uncertainty in Europe has a less significant impact on European equities than financials stocks, according to Aviva Investors 

Karen Kwok 21 December, 2016 | 3:25PM
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Political uncertainty within Europe has a less significant impact on stock markets in the region than share price movement in financials stocks, according to Aviva Investors Management.

Speaking to journalists in London, Peter Fitzgerald, global head of multi-assets at Aviva admitted that valuation of European equities look cheap, mainly due to depressed European financials stocks. 

“I do not think the market is pricing in significant political uncertainties in European equities,” he said. “One of the principal reasons for European equities being cheap is because of contagion from European financial stocks.”

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Banca Monte dei Paschi di Siena1.17 EUR0.00
BHP Group PLC2,329.50 GBP0.00Rating
Deutsche Bank AG11.33 EUR0.00Rating
Rio Tinto PLC6,541.00 GBP0.00Rating

About Author

Karen Kwok

Karen Kwok  is a Reporter for Morningstar.co.uk

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