29
Sep
European trend picks up the pace in the second half of the year
Eurozone and US growth is level pegging. Fundamentals justify the rise in the Euro. The gap between valuation and profits is benefiting European companies.
Key points
- The German elections have dampened prospects of European reconstruction
- The ECB is confident, but concerned by the rise in the Euro
- Monetary policy will remain expansionary in 2018, despite an expected overhaul to QE
- The rise in the Euro mainly reflects the improvement in Eurozone fundamentals
- The single currency has temporarily stabilised
- European growth proved a surprise, level pegging with US growth
- GDP will likely pick up the pace in the second half of the year
- The investment climate is increasingly confident
- Inflation will not head back above 2% before 2018
- The Eurozone no longer inspires fear, Credit Default Swaps are at their lowest levels
- Interest is growing in European equities
