Posted on 25 July 2011.
It can be tricky for American investors to follow the European stock market when there is limited broadcasting of financial news relevant to their countries. The internet has opened many doors that make foreign investing much easier and more secure for Americans. Understanding the priorities of European countries is essential to successfully investing in their companies.
Going Green and Making Green
Europe is undergoing a green energy revolution. Products and technologies that support ecological sustainability are on the rise in the European stock market. Climate change has become a serious issue in much of Europe. There is strong encouragement for companies to find better and greener ways of powering homes, businesses, and factories across the continent. European countries are expected to spend about $54 billion on clean energy initiatives from clean coal technology to low-emission vehicles by the year 2012. The European stock market is currently trading well for these green companies, though widespread financial instability is dampening the market as a whole.
The market in Europe has been struggling similarly to American markets due to worries over the American debt ceiling as well as Europe’s own financial woes. Europe’s main source of financial worry is the instability of the economy in Greece. There is uncertainty over how to fund a new bailout for the struggling country. Italy and Spain are suffering from similar troubles. As Europe’s third largest economy, the failure of Italy could potentially cause the crumbling of the euro currency, spelling disaster for the European stock market.
There is enormous turmoil plaguing financial institutions across Europe. There is certainly money to be made in clean technology companies by those who are willing to brave the mounting risk. Investors should be cautious upon entering the European stock market.
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