Whereas final 12 months was marked by political and financial uncertainty internationally, Greece, Russia and Italy have been Europe’s prime performing inventory markets.
Some buyers dismissed these markets as “too harmful, too politically unstable, too reliant on commodities, too weak economically or a mix of all 4,” Russ Mould, funding director at AJ Bell, a UK funding platform, mentioned in a notice to shoppers seen by CNBC.“However this simply goes to indicate that purchasing what’s comfy isn’t the path to massive income,” he added.
In response to economists, Greece, which was as soon as Europe’s sick man, appears to have entered a brand new chapter. The nation’s main index rose 43 p.c in 2019, making it the highest performer in Europe and internationally.
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The 12 months proved significantly good for shares of Greek banks, with Piraeus Financial institution rising greater than 250 p.c, and Nationwide Financial institution of Greece surging 171 p.c.
Final 12 months was additionally good for Russian shares. The nation’s main MOEX Russia Index was up by 29 p.c.
In response to Mould, “Russia emerged from a recession, helped by rate of interest cuts and the fastidiously crafted insurance policies of its revered central financial institution head, Elvira Nabiullina.”
Speaking about Italy, he mentioned that many buyers have given up on Western Europe, citing issues over Brexit, commerce wars, weak coalition governments, mounting money owed and “the obvious incapacity of the European Central Financial institution to conjure the expansion and inflation that it craves.”
READ MORE: ‘Circulation of worldwide capital unimaginable to cease’: Overseas investments in Russia anticipated to leap 70% this 12 months regardless of sanctions
“However extra rate of interest cuts and QE from the ECB seems to be to be granting Italy one more reprieve,” mentioned Mould.
Italy’s FTSE MIB rose 28 p.c in 2019.
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