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Can European stock markets continue their rally?

The article from MoneyWeek discusses the potential for continued growth in European stock markets, highlighting several key points. It notes that European stocks have been on an upward trend, with the Stoxx Europe 600 index reaching its highest level since 2007, driven by factors like a weaker euro, improving economic data, and expectations of a more dovish European Central Bank (ECB). Despite this rally, there are concerns about sustainability due to ongoing Brexit uncertainties, political risks in Italy, and the broader global economic environment, including trade tensions with the U.S. and China. The article also mentions that while valuations in Europe are still considered reasonable compared to other developed markets, the potential for further gains might be tempered by these external pressures. However, positive developments like a Brexit deal or a resolution in trade disputes could provide additional momentum. Overall, the piece suggests cautious optimism, advising investors to keep an eye on these geopolitical and economic indicators.

Read the Full MoneyWeek Article at:
[ https://moneyweek.com/investments/can-european-stock-markets-rally-continue ]