9 Stocks In Focus Ahead Of ECB Meeting

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The coming week is set to be a big one for European markets as the European Central Bank is due to hold a policy meeting on Thursday. The bank is widely expected to add to its stimulus measures by lowering deposit rates even further into the negative territory. That means that borrowing will become even cheaper for EU firms as the bank's new policy will make it even more expensive for European banks to store money at the ECB. The move, expected to yield a 0.3 percent or 0.4 percent deposit rate, would encourage banks to lend their money out rather than horde it, something analysts hope will revive the struggling EU economy and boost business activity within the bloc. If the bank does decide to act this week, it would also send the euro lower, especially with growing expectations that the US Federal Reserve is planning to move in the opposite direction. Now, with more stimulus likely on the way from the ECB, many US investors are looking toward Europe in order to get better returns on their investments. Many believe that the Fed's tightening plans will weigh on US corporations and that better trading options can be found abroad. With the potential for even more ECB stimulus on the table, here are 9 European stocks that US investors are considering. 1.
Christian Dior SACDI
luxury brands like Dior are likely to reap the benefits of a falling euro and more QE. Analysts at Goldman Sachs have
recommended
looking to companies like Dior to profit from EU QE as consumer cyclicals tend to rise the most during a market rally. Not only could Dior benefit in the short term from a sharp increase, but the firm is also likely to see a longer term positive impact as the euro continues to weaken and the company's products become more competitive within global markets. Over the past month, Dior shares have lost 4.58 percent, but the stock could see a marked increase as the ECB meeting draws nearer. 2.
Daimler AGDDAIF
German-based automaker Daimler is another popular pick among investors looking to add Europe to their portfolio. Not only has the company proven resilient in the past few years through the financial crisis, but it is likely to see a boost from further ECB QE. Automakers have been some of the biggest beneficiaries of stimulus spending from central banks. A strong dollar has caused foreign-made cars to gain popularity in the US and companies like Daimler will probably continue to increase their sales if the euro carries on weakening. Another reason many investors like Daimler is the fact that it is a German company, meaning it is based in the eurozone's largest and most stable economy. While firms based in countries like Greece may provide larger returns, there is a much larger risk from instability as well. 3.
Bayer AGBAYRY
Another German firm that has been popular among investors is Bayer AG. The company's businesses include operations spanning healthcare, agriculture and technology. Recently, Bayer has become a major player in pest control and crop protection and the firm has
pledged
to grow its presence both in Nursery and Greenhouse markets in North America. Over the past six months Bayer shares have fallen 6.49 percent, but many are anticipating a rebound in the coming months, which could mean that now represents a good opportunity to buy. 4.
Natuzzi SpA NTZ
Italian furniture maker Natuzzi is an unlikely candidate for stock pickers as the firm is priced at under $2 per share. However, many analysts believe that smaller firms will reap the largest benefits from further EU stimulus, and the company's low share price makes it a buying opportunity. Natuzzi recently
opened
a new store in Naples, Florida and is set to continue expanding across the US and Asia. That means that the company will benefit from growth in both economies even if the eurozone continues to weaken. So far this year, the company's shares have gained 10.32 percent, and that figure could keep rising if the ECB continues with its accommodative policy. 5.
Banco Bilbao Vizcaya Argentaria SA
BVA
Spanish financial service firm Banco Bilbao Vizcaya Argentaria SA is a riskier play that could pay off for US investors. The firm is based in Spain, making it a less stable option as political headwinds in the nation could affect the firm's performance. Not only that, but banking stocks in Europe have been struggling recently as the ECB's stimulus has both helped and hurt banking firms' profits. On one hand, the ECB's policy measures have boosted lending, but they have also also cut down on banks' margins. Still, the financial sector has been primed for recovery as the eurozone has been working to reform the industry in the years since the financial crisis. So far this year, BBVA shares have fallen 11.82 percent, but many investors are expecting to see a turnaround in the year to come as more stimulus and an improving Spanish economy lift the company's performance. 6.
InterContinental Hotels Group PLCIHG
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The UK's InterContinental Hotels Group PLC has fallen 11.25 percent over the past year, but some analysts believe now could be the time to buy as international travel becomes more and more popular. With the euro at new lows, tourist travel to the region has increased as everything from flights to hotels became cheaper with the euro's losses. InterContinental Hotels Group will likely benefit from an influx of tourists to Europe, leading many US investors to consider the stock in order to gain exposure to Europe. 7.
Unilever UN
Based in the Netherlands, consumer products firm Unilever is a big name company that has been around for decades. The company operates in countries around the world, meaning that the euro's depreciation will probably help its margins. The firm represents a relatively safe play in the european market as it is a well established firm with a healthy cash flow that pays a 3.1 percent dividend. 8.
Ryanair Holdings plcRYAAY
Discount airline Ryanair has proven itself to be resilient, even in the face of the eurozone's financial crisis. Now, with ECB stimulus helping the move the economy along, the low-cost Irish carrier is planning to continue growing at a rapid pace. In its latest earnings
report
, Ryanair increased its year-end earnings guidance by over 26 percent, citing increased passenger traffic and revenue growth. The company has said it expects to see its market share continue growing in the coming year, especially with the rising number of tourists traveling around Europe. 9.
Royal Dutch Shell PLCRDS
Another European play that carries significantly more risk is Royal Dutch Shell, a Dutch energy firm. Like its peers, the oil and gas company has been hit hard by the recent commodities rut, with the company's shares losing 25.21 percent so far this year. However, many analysts say that oil has already bottomed, making the energy sector a good play for long-term investors. Royal Dutch Shell provides an opportunity to add both Europe and oil to investors' portfolios and many believe the firm is due for a rebound soon. Despite the fact that the firm's most recent earnings report showed huge losses, investors have remained
confident
in the firm's ability to pay dividends and weather the commodities storm. The company has been careful to employ cost cutting measures in order to protect dividend payments and avoid adding even more debt to the balance sheet. Many are also optimistic about Shell's
interest
in oil projects in Iran now that the Middle Eastern nation has returned to the global oil market.
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