Euro Stocks Surpass U.S. Markets

April 03, 2007 02:12 PM
by findingDulcinea Staff
A new report shows U.S. capital markets lagging behind their transatlantic counterparts, as  the euro booms and the dollar declines. But how accurate is this data?

30 Second Summary

America’s hold on world finance appears to be weakening, according to business news source Thomson Financial.

European capitalization––the total value of all outstanding European shares––rose to $15,720 billion (€11,819 billion) at the end of last week. That figure surpasses the $15,640 billion value of U.S. stock markets.

Since 2003, European shares have risen 160% in value; compared to a 70.5% rise for their U.S. equivalents. The euro increased 26% against the dollar over that period. At time of writing, one euro is worth $1.33629.

However, the Thomson Financial figures, reported in the Financial Times, differ from other financial indices in two regards. First, the report defines Europe as encompassing “emerging Europe,” which includes Russia, with its enormous energy reserves.

Secondly, the new data doesn’t account for lesser value government sell-offs, as do the FTSE and MSCI, the favored indices of U.S. fund managers.




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