The future for Continental equities

ON EUROPE

In late April this year, most of the major markets were close to their four year highs.

European shares, which had been the best performers of 2012, had become the exception, dropping all their gains for the year in April. Investors had lost confidence in a zone rife with political insurgencies against austerity, liquidity-starved banks, bureaucratic stalemates, antiquated regulatory frameworks, under-capitalised institutions and floundering leadership. The European credit-crunch suddenly looked all the more menacing as the US and Chinese economies showed slower domestic growth and the sell-off in worldwide risk assets took global equities down the valuation scales along...