The first half of the year has seen a turnaround in the fortunes of many global assets, as fears of a global trade war and concerns over the political future of the Eurozone dominated the news pages and affected sentiment for European assets.
Exchange traded funds tracking Spanish and Italian equities have suffered significant falls over the past week as a result of events that threaten the political stability in both countries, and in the case of Italy raise fresh concerns over the rise of populism in Europe as a whole.
The weakening euro has provided a boost to a number of European stock markets over recent weeks, with the French CAC 40 being the latest to break out to a decade high.
The attitudes of European and US investors towards gold ETFs have not been this different since 2013, as EMEA-domiciled gold ETPs have attracted positive flows every month so far this year, while US offerings have suffered outflows.
The monthly overview of the European-domiciled ETP industry has shown investors have become bullish on markets, with continued inflows into equities in favour of fixed income. Overall, European-listed funds have seen the strongest monthly inflows since August 2015.
After months of strong outflows, the fortunes of European equities were finally reversed in June, with the asset class seeing inflows for the first time despite the looming threat of the referendum on the UK’s membership in the EU, and the subsequent Brexit vote.