Despite investor caution on the state of Europe's peripheral markets, Spain and Italy are the biggest country overweights for T Rowe Price's EU fund manager Dean Tenerelli.
We are seeing improvements in the European economic environment, and there have been some particularly encouraging signs coming out of the periphery. Currently, Spain and Italy are my two largest country overweight positions. From a macroeconomic standpoint, we are starting to witness signs of a recovery in those countries, as evidenced by the latest PMI numbers, and in Spain we have seen unit labour costs coming down rapidly. As exports steadily rose, the country moved earlier this year to a current account surplus. We are seeing a lot of great opportunities at the stock level to inv...
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