Escape from Europe. Investors are leaving the European financial markets, which they consider increasingly risky due to their proximity to and exposure to the Russia-Ukraine war, despite the fact that the stock exchanges of the Old Continent continue to offer performances not very different from those of Wall Street.
Last week, Piazza Affari achieved a rise of 5,1%, just below that of the Eurostoxx (+5,43%) and that of the Dow Jones (+5,50%) and also yesterday the Milan Stock Exchange ( +0,30%) was among the best in the Old Continent.
The escape from funds exposed to Europe is a real exodus for Bofa
But reality says something else and that is what The Sun 24 hours highlighted in recent days and which a report by Bank of America (Bofa) defines "exodus from Europe“. According to the first calculations made by the American bank, in the second week of March, funds investing in stocks on the European markets have registered the largest capital outflow in history.
War scares and its economic and financial repercussions too: this is why investors leave the European Stock Exchanges, which they consider the most affected by the conflict and remain liquid while waiting for favorable times or take refuge above all on Wall Street, whose volatility these days depends more on the Fed moves on interest rates and rising inflation and the Russia-Ukraine war.
The worst outflow in history from funds investing in Europe
Naturally, the repositioning of investors does not only concern Europe and the outflow from funds that invest in bonds from emerging countries is also significant, but Europe remains the most affected by the outflow of capital. According to Bank of America, in the second week of March, funds exposed to European markets, i.e. those investing in European stock exchanges (including Piazza Affari), exited 13,5 billion dollars, which is equivalent – he underlines The Sun 24 hours – to the “worst weekly capital outflow in history”.
A real "exodus" from the European stock exchanges, which "far exceeds that of March two years ago". And that's not to say it ended here. Indeed the opposite is much more probable, at least until the war is interrupted by a "ceasefire" which for now is only a hope. But even after the war, it remains to be seen whether or not we will be able to avoid the nightmare of stagflation. The via crucis is not over.
