The EU Equities: A Brief Introduction For Investors

EU equities, encompassing diverse sectors including technology, pharmaceutical, energy, finance, and luxury goods, have evolved significantly over centuries. These sectors continue to play a pivotal role in the European economy, showcasing the unique strengths of the EU.

Technology and Pharmaceutical EU Equities

The EU equities have developed for centuries, and together with forex pairs like the USDEUR, they stand as essential assets for the European economy. The technology and pharmaceutical sectors have flourished in previous years for obvious reasons.

Regardless of the e-commerce and hi-tech dominance of the American and Far Eastern markets, EU equities excel in other technological areas. Infineon Technologies excels in manufacturing semiconductors. This company focuses on developing energy-efficient solutions vital for the automotive and ecology sectors.

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Since March 2020, the pharmaceutical business has skyrocketed in comparison to previous years. During the COVID pandemic, the European AstraZeneca has grown multiple times, becoming a key player across the EU equities market. The STOXX50 index indicates that over 20 percent of supersector weighting comes from health care.

Energy Equities In The EU

The upcoming elections in the EU focus mainly on climate issues. The European Green Deal is the next step to limit the usage of natural resources and rely more on renewables.

That’s the reason why energy EU equities bring so much attention to traders. The biggest company in the Union is TotalEnergies. The French conglomerate develops in two ways. Its tight relations with Middle Eastern countries enable the usage of oil. Nevertheless, TotalEnergies also heavily invests in solar and wind energy worldwide, including South America, Africa, Asia, and countries such as the USA and France.

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Is The European Union A Financial Powerhouse?

Even though more and more traders keep an eye on the crypto market with its decentralized finance concept, banking still plays a vital role in the world economy. The European Union is no exception.

As the European Banking Federation reported, the European financial sector significantly helped the economy during the COVID crisis. Individuals, conglomerates, and even governments rely on banking institutions. Deutsche Bank is renowned for its precision in short- and long-term financial operations.

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The centuries of experience and development of the European financial industry provide high-quality services. Traders in the stock market also keep tabs on the financial EU equities.

Automobile EU Equities

The automotive sector is a crucial part of the EU equities market, as well as its tradition and history. French, Italian, and German companies still stand as robust participants worldwide.

Stellantis is the result of the merger between French PSA and Italian FCA. Currently, the company’s portfolio presents the most popular automobiles in Europe and worldwide, such as Peugeot, Fiat, and Opel.

Even bigger automobile conglomerate functions in Germany. Volkswagen has been known for its precision for decades. In the European automobile market, its tight relationship with Skoda distinguished itself with the balance between price and quality. Volkswagen is the second largest automobile manufacturer in the world, behind Japanese Toyota.

It is also worth mentioning that some luxury brands that are usually associated with the European market are listed outside the EU. The best example is Ferrari, which can be found in the NYSE.

The Excellence of Luxury

While for unfamiliar traders, the branches presented above should stay essential in the market, there is one unique company. Its achievements stand out as one of the best among all major EU equities.

LVMH is the abbreviation for Louis Vuitton Moet Hennessey. This French company manages over 70 luxury brands, some of which have a history reaching back to the 18th century. This conglomerate focuses on luxury goods, specializing in fashion, jewelry, and fragrances. According to the STOXX50 data, LVMH is one of the top five brands in Europe, excelling in the supersector of consumer products and services.