Stoxx Europe 600 Rises 12% as Nearly Half of Revenue Comes From Abroad

2 articles · Updated · Bloomberg · Aug 13

The Stoxx Europe 600 has climbed about 12% this year, but the rally says more about global demand than Europe’s domestic economy.
Nearly half of the index’s revenue comes from outside the continent, according to its owners, versus less than 30% for companies in the S&P 500.
That overseas tilt reflects Europe’s strength in luxury goods, pharmaceuticals and engineering—sectors with products sold widely around the world.
The result is a disconnect: Europe’s stock market has long been a weak proxy for local growth, especially for demand inside the region.