Everything you wanted to know about European stocks (but were afraid to ask)

Now that we’ve added over 100 UK and German stocks to our selection on eToro OpenBook, it’s time to learn more about these new arrivals.

What affects UK stocks?

The country that started the industrial revolution back in the 19th century is now a post-industrial economy par excellence – meaning that most of its biggest companies come from the consumer goods and services, financial and retail sectors. Some of the more famous brands recently added to our stock offering include Barclays, HSBC, Marks & Spencer, Tesco, Burberry, Kingfisher and easyJet among others.

As such, these companies’ stocks are very much affected by the UK economy’s general health (indicated by such data as inflation, unemployment and the consumer price index) and the Bank of England’s interest rate decisions.

What affects German stocks?

Germany possesses Europe’s strongest manufacturing sector, which many analysts credit for Germany’s relatively healthy economy and continued growth, when compared to most of its Eurozone neighbors. Some of the German manufacturing brands that you might be familiar with include Siemens, BMW, Volkswagen, Mercedes-Benz (owned by the Daimler car manufacturing company) and Merck, among others.

As such, these companies’ stocks are heavily affected by international trade relations, as well as commodity prices (such as industrial metals and oil). For example, many German companies’ are currently suffering from the latest trade sanctions imposed on Russia because of their involvement in the crisis the Ukraine, because investors fear that they will end up losing an important export market.