LONDON (Reuters) -Europe’s smaller companies are emerging as a popular vehicle for investors to help insulate portfolios against both tariffs and a stronger euro, as cheaper credit and the prospect of more government spending bolster confidence in the economic outlook. The domestic-leaning bias of smaller companies makes them less vulnerable to levies on cross-border goods and they are also less exposed to currency swings when the euro strengthens, making euro-zone exports more expensive abroad. The STOXX Europe small- and mid-cap indexes have risen 9% and 11% this year, respectively, beating the STOXX Europe large-cap index, which has risen just 7%.Read More
Analysis-Investors bet on Europe’s smaller companies to dodge tariff fallout, strong euro
By Samuel Indyk
