FXStreet reports that while economists at Capital Economics expect the economic recovery in the eurozone to be slower than that in the US, they still anticipate that the MSCI EMU will outperform the MSCI USA in the remainder of the year. 

“We think the rotation towards sectors that were hit hard by the pandemic, like energy and financials, will resume. We expect the gap in the performance of individual sectors between the US and eurozone to narrow as the euro-zone economy gradually reopens later this year. While a lot of good news on the economy appears to be already discounted in the US, we suspect this may not be the case in the eurozone.”

“We forecast the MSCI EMU to rise by ~3% between now and end-21. This compares with a projected increase of less than 1% for the MSCI USA.”