European sectors

The course of an economic cycle, characterised by its growth and contraction phases, can also be read through the performance of the sectors that constitute a country’s economy. Thus, there will be sectors that perform better in the initial stages of growth or others that will perform better in the presence of inflation or a recessionary phase. The reading is twofold: the phases of the economic cycle suggest which sectors to focus on; the performance of sectors gives us information on the state of a country’s economy. An analysis of sector trends is therefore useful to understand what investors expect from the state of a country’s economy. In this sheet we present the analysis of the sectors that compose the EuroStox 600