Industry Sector Weekly by Lloyds TSB

European equity markets remained highly volatile, cautiously finding support in the eurozone stability package announced earlier this week and further strong corporate earnings results, which helped pare back some of the losses over the past four weeks. Equity markets remain highly volatile

European equity markets remained highly volatile, cautiously finding support in the eurozone stability package announced earlier this week and further strong corporate earnings results, which helped pare back some of the losses over the past four weeks. However, there is a hanging perception that the current effort to support eurozone sovereign debt markets is only a short-term patch to the longer-term problem of sovereign deleverging, a process which may derail global economic recovery. The Stoxx 600 gained 6.79% this week, but has seen year-to-date gains erased. Eighteen out of nineteen industry groups ended the week positively, except for insurance, which was weighed down by high levels of exposure to sovereign debt and the oil spill in the Gulf of Mexico.

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