Europes stock market is in danger of a run, says Fitch
By Paul DicksonESPNCricInfo.com/Cricinfo/EuropesStockMarketFirmsEuropes stock markets are in trouble.
And they’re not alone.
The Fitch rating agency is warning that Europe’s markets could be in for a run as soon as this week.
And that could cause an economic downturn that could hurt the region’s economy and send it into a recession.
The outlook for the European economy is deteriorating.
Fitch believes that the eurozone could be entering a period of contraction as soon for many sectors as the next few years.
Fitch also has a warning for emerging markets.
They are likely to suffer from a slowdown in economic growth.
The region’s growth prospects have been undermined by the rise in commodity prices.
Fitching has been warning for years that commodity prices were about to crash.
And now that commodity price bubbles are starting to pop, the Fitch is now saying that it could become a problem.FITCH says the European stock market could be on the verge of a second downturn, and that it’s unlikely that the recovery from the crisis will continue.
The U.K.’s Standard Chartered is a major beneficiary of this trend.
Its shares have soared over $50,000, or 10 times the value of the overall European market, in just a week.
The S&P 500 index has also increased more than 500% in that same span.
S&!s shares are up more than $5,000 a share, or 3.5 times the S&P 500.
The average S&p is up just 5%.
Fitch says that European stocks could be the first to suffer as a result of this correction.
“A second recession is a likely scenario, with Europe’s share of the U.S. economy expected to be even weaker,” Fitch says.
The report says that Europe could face a recession by the end of 2019.
Fitching says that the risk is real.
The European stock markets could experience a second crash within the next 12 months.
Fellow credit rating agency Moody’s Investors Service has a slightly more positive outlook.
The agency says that Fitch’s forecast is for the next year, which would be the second-longest recession since the 2008 financial crisis.
Moody’s says that it expects economic growth to return to its long-term average in the next two years.
However, the agency says, that the outlook for European economic growth remains very low, and the risks of a sharp decline in European economic activity are growing.
Finance minister Anders Borg said that the U