Just like the US equity market, European equities have been stuck in a range for the last several months, bouncing up and down between the top and bottom of a sideways trend channel. While we haven’t quite gotten there for the US market, Europe’s STOXX 600 is actually breaking out to new 52-week highs this morning (although it is still below prior highs from back in early 2018 and then early 2015 as well). Now, if only the US could follow suit.
From the perspective of a US investor, the breakout in European large-cap equities isn’t quite there yet, but it’s darn close. After adjusting for changes in the value of the dollar, the STOXX 600’s 52-week high was back in early July, and even after this morning’s gain, the index is just shy of taking out that prior short-lived peak. It may be hard to see on the large chart, so we have zoomed in on the last few days in the red-bordered inset chart in the lower right. As of this writing, the STOXX 600 is just 0.33% from a 52-week high in dollar-adjusted terms. Start a two-week free trial to Bespoke Premium to sample our most actionable investment research and receive access to all of our interactive tools. If you use this checkout link, you’ll receive a 10% discount on an annual membership if you stick with it past your trial period.