SPEU - Europe's Summer Of Woes

• As 2021 got underway, many investors saw European equities as an opportunity: cheap, high-quality stocks on the cusp of a robust economic recovery, with a potential added boost coming from an appreciating euro against the US dollar.
• However, the region's botched handling of the initial vaccine distribution process, the persistence of high daily case rates for Covid and a euro rally that failed to materialize all contributed to throwing a wet blanket on the Euroequities revival party.
• There should still be some upside to the recovery story as the more draconian social distancing measures come to an end. The region is likely to experience less inflation in the months ahead than the US, to the extent that trend stays in focus.

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