Financial investors and companies are better to invest in the United States than in the eurozone for several reasons. How can this trend be corrected? Analysts at Natixis explain why capital will be diverted from the eurozone to the US.
Is financial and corporate investment flowing more heavily into the US than the eurozone?
“The greater appeal of the United States over the eurozone (higher potential growth, greater corporate dynamism, higher-quality university system, lower tax burden) is leading (financial and physical) capital to shift from the eurozone to the United States.”
“How can this trend be corrected? The levers for action in the eurozone are clear: innovation and investment drive to lift productivity gains, greater investment in higher education, more selective public spending.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD gains as US jobs data points to Fed easing
The Australian Dollar recovers some ground on Thursday against the Greenback, following the release of US jobs data. The US Bureau of Labor Statistics revealed that the labor market is weakening further, suggesting that the Federal Reserve may continue to ease policy.
EUR/USD pushed into a fifth straight loss, falls below 1.0500 again
EUR/USD backslid a fifth straight trading day on Thursday, falling another one-fifth of one percent and declining further away from 1.0500. Fiber eased lower for for a fifth consecutive trading day after the European Central Bank trimmed interest rates by another 25 bps, with broader market sentiment keeping one foot firmly in the Greenback for the day.
Gold price plummets as traders cash in on hot US PPI
Gold prices snapped a four-day streak of gains on Thursday, tumbling more than 1% as investors digested mixed economic data from the United States. A softer than expected jobs report, but higher prices on the producer’s side, kept traders from pushing Bullion prices higher.
Crypto Today: Bitcoin price tops $102K as Trump’s firm acquires Ethereum and Chainlink
The cryptocurrency sector valuation broke past $3.5 trillion on Thursday, up 9.4% since the market crash halted on Tuesday. In the last 24 hours, 104,700 traders were liquidated with the $172.7 million in long contracts closed accounting for 58% of the $298.5 million in total liquidations.
Can markets keep conquering record highs?
Equity markets are charging to new record highs, with the S&P 500 up 28% year-to-date and the NASDAQ Composite crossing the key 20,000 mark, up 34% this year. The rally is underpinned by a potent mix of drivers.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.