Why it’s time to go overweight Europe: Markit

Amid a volatile Chinese stock market and fevered anticipation over a U.S. Fed rate hike, European stocks are proving to be fruitful investment, data from Markit shows.

Investors who have been overweight on European stocks with a high exposure to Europe, the Middle East, and Africa (EMEA) have benefited from a jump in stock prices compared to those exposed to other regions like Asia and North America, a report by financial info services firm Markit revealed on Tuesday.

"Uncertainty continues to overhang global markets ahead of a potential U.S. rate rise and concerns over the health of Chinese and emerging market economies," the report, led by analyst Relte Stephen Schutte, explained.

"These factors and the ECB's 1 trillion euro ($1.1 trillion) stimulus program have resulted in interesting stock return variations across European equities in recent months."

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