Greece, Russia and Italy have been Europe’s top-performing stock markets in 2019 – a year marked by economic and political uncertainty all over the world. An investment director at AJ Bell, a United Kingdom investment platform, Russ Mould said in a note month that a few of investors dismissed these financial markets as too politically week, too risky, too weak economically, too dependent on commodities or a combination of all four. Mould says that this just goes to reveal that acquiring what more comfortable is hardly the route to giant profits.
The stock market of Greece
It was once the sick man of Europe, whereas Greece appears to enter a new chapter. The main index of Greece rose to 43% in 2019 – making it the major performer in Europe as well as all over the world. Senior analyst of Europe at the research firm DuckerFrontier, Athanasia Kokkinogeni told CNBC last week that economic growth of Greek accelerated in 2019, thanks to improving government spending and reanimate investment tied with a healthy exports outlook. The previous year proved good mainly for shares of Greek banks. Piraeus Bank surged over 250%, National Bank of Greece rose more than 171% whereas shares of Alpha Bank increased 71% and Eurobank shares grew 67%.
In 2019, Greece put an end to capital controls, and its government introduced Hercules, a program intended at allowing investors to repackage bad loans. Moreover, Mike Bell of JP Morgan Asset Management told CNBC that the European Central Bank also helped Greece. The latest round of quantitative easing in the eurozone reduced borrowing costs. All at once, he also added that there were no bad stories in 2019 about Greece as compared to previous years, primarily at the height of the crisis of sovereign debt.
Stock Market of Russia
The main index of Moscow surged 29% in 2019 – a year noted by fiscal loosening. Elvira Mould from AJ Bell stated that Russia arose from a downturn, assisted by interest rate cuts and the wisely crafted policies of Elvira Nabiullina, its respected central bank head. In November, the International Monetary Fund (IMF) said that the central bank of Russia announced noteworthy interest rate cuts since June. Furthermore, the Bank of Russia announced an additional cut to its main rate in December to around 6.25% each annum. Corporate sector’s news also enhanced the MOEX.
Stock Market of Italy
FTSE MIB of Italy escalated 28% in 2019 in spite of divergences with Brussels and a sudden election in Rome. Several investors gave up on Western Europe, mentioning worries over Brexit, weak coalition governments, mounting debts, trade wars and the apparent inability of the European Central Bank to raise the growth and inflation that it requires.