Europe

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

Improved political visibility

Growth outlook 'turning a corner'

Outflows of €743m in June

The most important factor for European equities for the foreseeable future will be the direction of bond yields.

UK faces €100bn divorce bill

Brexit is exception to 'relatively rosy scenario'