Is The Euro's Decline A Good Reason To Invest?

Despite a simmering dispute between EU officials and Greek policymakers, European businesses could be turning a corner as the European Central Bank's massive bond buying plan begins on Monday. The bank is expected to pour €60 billion into the region's financial system each month in an effort to rekindle a faltering economic recovery. The ECB's accommodative stance is a sharp contrast to the course taken by the US Federal Reserve, which is expected to raise interest rates some time in 2015.
Euro Sinking
The ECB's easing measures have already driven the euro to record lows and the common currency is only expected to continue falling as US data has been indicating a strengthening economy. On Friday,
data
from the US labor department showed that US employers added 295,000 jobs in February and that the unemployment rate had dropped to 5.5 percent. The figures pushed the dollar higher and sent the euro tumbling to make the common currency nearly even with the greenback at $1.09.
A Silver Lining
The falling euro has made many wary of investing in Europe, however the currency's losses coupled with falling oil prices have given many of the region's businesses a leg up, especially those which focus on exports. Companies whose sales are made primarily outside the bloc could see the greatest gains from the current economic climate. On Wednesday,
United Parcel Service Inc.UPS
noted that it has already seen a
10 percent rise
in packages shipped from the EU to the US, a good indication of a growing trend.
Who Stands To Gain?
Companies like
Anheuser-Busch InBevBUD
and
ASML HoldingsASML
, do the majority of their business abroad and are poised gain momentum as the euro continues to sink. German automakers also stand to benefit,
BMW
and
Daimler AG
are likely to see a lift in the coming months as the euro deteriorates against the dollar.
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