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Autos likely to remain a drag on euro-zone equities

We think that equities in the euro-zone will be caught in the crossfire of a stock market sell-off in the US next year, as the economy there slows. Our forecast is for the S&P 500 to fall by 14% in 2019 and we don’t think that equities in the euro-zone will generally do much better. Although the struggling auto industry has already fallen a long way in the euro-zone, it is unlikely to be an exception.

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