Cost cuts will aid further European stock growth - Threadneedle

Threadneedle European equity managers believe the region's market recovery should gather pace in the autumn as companies continue to make the cost cutting needed to negotiate through the downturn.

Dave Dudding and Philip Dicken, who head up the team, are confident encouraging outlook statements from companies, further evidence of improving Asian growth and evidence of stabilisation in Europe, will provide the scope for equity gains. They expect the focus on sectors, which has dominated the investor environment over the past 18 months, to give way to a more rational stock-specific approach. In a period of low inflation and continued tough operating conditions, the pair anticipates companies with pricing power will succeed and industry consolidation will continue. The Threadne...