In some ways, Europe's capital markets are going through an unprecedented process. The common currency has created a need for new benchmarks. So indexes that measure performance in the euro zone have proliferated, and money managers must try to match or beat them. That's why the companies included in the main indexes form such an important core. At the same time, the Continent is maturing financially much as America did 30 years ago.
Companies increasingly raise funds through stock and bond issues rather than bank loans.
Meanwhile, investors want more bang for their buck than they can realize in savings accounts. Analysts expect that amount to double by 2002. With millions of euros in cash coming into their portfolios daily, European fund managers need to be able to buy and sell quickly. As a result, they favor Europe's largest, most liquid stocks. All these factors point to continuing appetite for these must-have stocks.