Europe to follow the coronavirus recovery playbook
China new coronavirus cases peaked in mid-February. Since then the MSCI China Index has outperformed the MSCI World Index by 19% (see chart below), as the country became the global safer haven, and the economy gradually restarted. We believe continental Europe could now follow a similar, if more restrained, equity recovery path.
The broad MSCI Europe and MSCI UK equity indices have underperformed MSCI World Index by 3% and 5% respectively since the start of the year (see chart below). Europe became the epicentre of the coronavirus