European Shares Offer Access to Automation Revolution

Despite recent sluggish earnings, the structural case for European industrial firms is strong, according to Hermes

Karen Kwok 7 August, 2017 | 4:56PM

European industrial stocks were one of the weakest performers in the region’s earnings rebound story this year, but a fund manager from Hermes believes that investors should not overlook the sector, thanks to the emergence of automation in factories.

European equities have enjoyed renewed investor enthusiasm this year. Following the victory of Emmanuel Macron in the French presidential election in April and a 25% profit growth in European companies in the first three months of the year, the Euro Stoxx 600, a benchmark for European equities, gained 10% by the mid of May.

Despite a rising euro that has hurt the competitiveness of European exporters recently, earnings growth is up 12.6% year on year in July, according to a published note by Morgan Stanley.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Amazon.com Inc2,421.86 USD0.00
Hermes Europe ex-UK Equity F GBP Acc2.31 GBP2.54
KION GROUP AG55.92 CHF0.00

About Author

Karen Kwok

Karen Kwok  is a Reporter for Morningstar.co.uk

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