Premier's Robbins on the valuation gaps in Europe

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

After years of economic disappointment outside of Germany, the EU has finally put together a sustained run of improving growth.  Economic growth has returned, and is expected to reach around 2% this year. Unemployment has fallen from a peak of over 12% to nearer 9%. This pick-up in economic momentum, coupled with what appears to be a coordinated attempt by central bankers to price a reduction in monetary easing into bond markets, means it is not surprising that bond yields have spiked across the EU.  GAM's Gallagher: Why there is 'pretty good potential' for an earnings rebound in E...