Managers 'cautiously optimistic' on Europe

Strong European company valuations will offset the effects of the US slowdown, managers say. Pet...

Strong European company valuations will offset the effects of the US slowdown, managers say. Peter Jarvis, director of European Equities at F&C, believes continental Europe’s domestic economy will continue to be driven by supportive valuations. Jarvis is confident on Europe in view of merger and acquisitions activity, with better than expected earnings growth and a robust regional economy. Against these positives are risks for companies with US exposure, particularly European banks in view of expected ECB rate rises, he said. Jarvis is underweight utilities, large cap pharmaceuticals ...