Europe

Reacting to Sunday Times report

No progress on key issues

'Potential headwinds of a stronger euro'

Europe's economic recovery continues to broaden and deepen. The ongoing expansion is supported by a synchronised global growth backdrop with few medium-term concerns coming from the international trade impulse.

Managed by Rik den Hartog

Stocks chosen from the FTSE 350 and Stoxx 600

Fundamentals stronger than headlines suggest

At first glance, European smaller companies look expensive. They trade on a two-year forward earnings-per-share multiple of 15.8x, against their 15-year average of 13x.

Valuations have doubled over five years

Attractive economic backdrop