European stocks rise on economic recovery, lower short selling


(MENAFN) Improving economic conditions in Europe, particularly in countries like Germany and the UK, could provide a boost to European stocks, particularly those in cyclical sectors. With global growth on the rise and indications that these economies are positioned to avoid prolonged recessions, any potential interest rate cuts may further support the market.

Peter Oppenheimer, a strategist at Goldman Sachs, highlighted the potential benefits for cyclical sectors as interest rates decline and economic conditions soften. He noted that while technology stocks are expected to perform well, there may be better relative valuation opportunities outside the United States.

Moreover, there are signs of improving sentiment towards European stocks, as indicated by a significant decline in short selling positions. Data from S&P Global revealed that estimated short selling positions in the region dropped to less than 0.2 percent of total market capitalization by the end of last year, marking the lowest level in at least a decade. This trend has persisted, indicating a positive shift in investor sentiment towards European equities.

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