- European Commission’s consumer confidence index at minus 19 points in February.
- Europe’s double-digit equity market returns so far this year.
- Economic data sharply surprising expectations to the upside.
- China's reopening likely to be one-off rather than sustained support for European growth.
- Monetary backdrop in Europe getting significantly tighter at a time when global liquidity also being withdrawn.
Beware the European optimism trap
Many of the factors that have boosted the region’s equities in the year to date are likely to fade as 2023 progresses
Rebecca Patterson
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