“Despite the new highs, opportunities remain in European large caps with strong profitability, while small caps may benefit later on.”
- European equity markets fully recovered the losses of 2022 and are back at new highs.
- Economic activity data shows signs of improvement in an overall still weak environment.
- The ECB should start to cut rates later in May, favouring a return of interest to Europe and potentially to small caps.
European markets reached new highs, above the January 2022 peak, set before the start of the Ukraine war, now at its 2nd anniversary (24th February). European equities are up around 30% since the 2022 lows, reminding us that patience is a virtue when it comes to investing.
This trend has recently benefitted from improving economic data, within a still weak growth scenario. In particular, private-sector activity surveys hit their highest level in eight months, showing signs of relief, except for Germany amid very weak manufacturing activity.
You can now read the full whitepaper at the link below
