Global growth makes now an interesting time to add European equity exposure
Largely unchanged global growth prospects make now an interesting time to add European equity exposure
Join William Hobbs, Equity Strategist as he explains why, despite the patchy economic outlook for the euro zone in the near term, the region’s economy should improve towards the end of 2014 due to thawing credit markets and further easing of monetary policy from the European Central Bank.
Set in this context, large cap European equities look a good bet at present, given their greater earnings headroom in comparison with US equities, and their significant exposure to improving global growth.
Nick Montgomery, Portfolio Manager, discusses why he particularly likes BNP Paribas in the banking sector and the German chemical giant BASF. BNP is very diversified with a strong balance sheet and a leading retail business, while BASF has significant global earnings strength, an undemanding valuation and attractive dividend yield.
Download the graphs referred to [PDF, 32KB]