Michael M. Santiago | Getty ImagesEuropean stocks are now more attractive than their U.S. counterparts, according to Swiss Bank UBS , with factors such as economic data, interest rates and earnings playing a key role.
In a note entitled: "A U-Turn: Favouring Europe over US equities," the bank's strategists said European stocks excluding the U.K. now outrank the U.S. on its "regional scorecard."
UBS outlined a number of reasons for its "U-turn," especially given U.S. markets tend to outperform European ones.
Indicators tracked by the bank — such as purchasing managers' index (PMI) data — suggest an upside risk to European GDP, and a downside risk to U.S. GDP, the bank said.
Some of Europe's central banks have already begun easing, and the European Central Bank is expected to do so as soon as June.
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