With economic growth slowing in Europe and hopes of a recovery in the second half of 2011 dashed, investors should focus on value stocks and move from cyclical areas into more defensive areas which offer high dividend yields, Nigel Bolton, head of European equities at BlackRock told CNBC.
UK households saw their finances deteriorate faster than during the height of the recession in 2009 in August, a survey showed on Monday, in a sign that the economic recovery remains fragile in the country as prices rise and incomes fall.
The euro zone will be able to avoid a currency crisis despite a debt crisis plaguing the region as Asian central banks continue to buy the currency, shying away from the dollar amid doubts over the health of the US economy, Danske Markets’ chief analyst at told CNBC on Wednesday.
As calls intensify for much greater fiscal union in the euro zone and the creation of a eurobond, analysts told CNBC that such measures — while necessary to contain the debt crisis — are politically untenable, leaving euro zone leaders caught between a fiscal rock and a political hard place.
Economic growth in the euro zone will slow in the second quarter but remain positive, economists told CNBC.com, before it risks stagnating in the third quarter as businesses delay investments and the turmoil that has wreaked havoc in financial markets starts to affect the real economy.
Oil prices fell on Thursday as investors grew increasingly concerned that the European debt crisis could hit France next and hit growth, but demand for oil from China and other emerging markets will continue to underpin oil prices in the long term, analysts told CNBC on Thursday.
Shares in French Bank Credit Agricole fell in early Paris trade on Friday after the group announced it took a hit in the second quarter for an expected loss at its Greek Emporiki Bank unit and its participation in an EU-led rescue plan for Greece.
Italian bank shares were sharply lower in Wednesday morning trade after Reuters reported German Finance Minister Wolfgang Schaeuble said the euro zone's rescue fund should only purchase bonds on the secondary market in exceptional circumstances.
The euro zone economy is recovering at a growth rate which is "above potential", albeit "not very strongly", European Central Bank Executive Board Member Lorenzo Bini Smaghi told CNBC on Tuesday.
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