Unanticipated Interest Rate Gains: Continued Profits in Select European Shares and ETFs

The European Central Bank (ECB) has recently cut interest rates by another 0.25 percentage points, lowering the main refinancing rate in the Eurozone to 3.90 percent. This move, coupled with the inflation rate in Europe staying at 2.6 percent in July, could signal a more favorable environment for European stocks.

Investors looking to capitalise on this situation may find potential benefits in Exchange-Traded Funds (ETFs). Three such ETFs are worth considering: The Amundi Stoxx Europe 600 UCITS ETF Acc, the Amundi MSCI Europe Growth UCITS ETF - EUR (C), and the iShares MSCI Europe Quality Dividend ESG UCITS ETF EUR (Dist).

The Amundi Stoxx Europe 600 UCITS ETF Acc invests in the broad European market, focusing on the Stoxx Europe 600, with an annual fee of 0.07 percent and 600 holdings. On the other hand, the Amundi MSCI Europe Growth UCITS ETF - EUR (C) focuses on growth stocks from Europe expected to benefit from more favorable interest conditions, with a fee of 0.35 percent and 199 holdings including Novo Nordisk, ASML, AstraZeneca, SAP, and LVMH. Lastly, the iShares MSCI Europe Quality Dividend ESG UCITS ETF EUR (Dist) invests in 70 high-dividend European stocks, such as Schneider Electric, RELX, ABB, Lonza, and Zurich Insurance Group, with a dividend yield of 3.20 percent.

Berenberg bank has also analysed numerous small-cap stocks and recommended some for purchase, as detailed in the article "Berenberg bank assures: Up to 78% upside potential in these small-cap stocks - Buy now?". Berenberg recommended the best small-cap stocks for purchase in the article.

More speculative individual titles may only become attractive when the ECB further lowers interest rates. Flagship stocks such as Novo Nordisk, ASML, SAP, UniCredit, Ferrari, AstraZeneca, and Munich Re are currently attractive. However, it's important to note that lower interest rates are expected to particularly benefit growth stocks and small-cap stocks, but may only become attractive when interest rates are truly low.

For those seeking additional investment insights, the article "These stocks are really dirt cheap", reveals market expert Robert Halver, might provide valuable information. Investors should focus on ETFs and spread their investments, with individual winning stocks from Europe potentially being attractive now.

It's also worth mentioning that European stocks are currently lagging behind their American counterparts. With the ECB's interest rate cut, this trend could potentially reverse, making European stocks more attractive for investors. However, it's crucial to conduct thorough research and consider the risks involved before making any investment decisions.

Unanticipated Interest Rate Gains: Continued Profits in Select European Shares and ETFs