Everyone Is Chasing Year-End Gains, Even In Europe

By Michael Msika and Jan-Patrick Barnert, Bloomberg markets live reporters and strategists

So much for political turmoil in Europe. The market tide is turning fast, with investors brushing aside the drama in France over the budget and chasing the market rally into year end. Going against this trend looks very risky.

That’s because market signals are turning green: volatility is falling fast, French stocks are bouncing with traders cutting short bets, and Germany’s DAX is hitting records. The Stoxx 600 just had a seven-day winning streak, its best since May, and the index’s strength is becoming increasingly broad across sectors. Exuberance still looks some way off.