Gavekal Capital: MSCI Europe Market Cap Still Below pre-GFC Levels

Thursday, July 10, 2014

MSCI Europe Market Cap Still Below pre-GFC Levels

The market capitalization of MSCI North America surpassed pre-financial crisis levels in early 2013. MSCI Asia Pacific recovered to 2007 levels last year and, more recently, exceeded them. MSCI Europe, however, is the only one that remains below its pre-financial crisis market capitalization:

Within MSCI Europe, the Health Care and Consumer Staples sectors have lead the recovery in market cap and Industrials managed to regain pre-crisis levels (barely) earlier this year, but the rest of the sectors continue to struggle:

European Financials-- at the bottom of the group, along with the Telecom and Utilities sectors-- seemed to be on the road to recovery from mid-2012 until stalling earlier this year:

In spite of its inability to regain the market's favor, the Financial sector is still the largest in MSCI Europe-- and the main reason the regional index has not recovered to previous levels of market capitalization:

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