Investors can begin to feel more confident about Europe, says Old Mutual’s Lilley
Kevin Lilley, manager of the Old Mutual European Equity fund comments on the eurozone recovery.
It has been encouraging to see signs of improvement in Europe; the region may only be beginning its journey to recovery, but the GDP figures released by France and Germany have comfortably beaten the expectations of economists. With the eurozone announcing this morning it is out of recession, investors can begin to feel more confident about the eurozone.
If you then layer onto this the July business and consumer confidence indicators released in recent weeks, this would indicate that the recovery is continuing into the third quarter.
European equities remain good value compared with other regions as they have been overlooked due to political and economic concerns. With the economy now recovering and the political noise more subdued, investors are likely to return to look for value opportunities.