Why Europe is well set for a rotation into value stocks

After a strong 2017, the first half of this year has seen increased volatility in world markets, as monetary policy tightens and political events elicit caution. World growth is expected to remain robust, but with downward revisions for the next two years.

Growth in the eurozone is slowing. A steady fall in the manufacturing PMI means forecasts have been revised downwards for the next two years. Seneca's Elston: Is now the time to invest in UK growth? Nevertheless, the European Central Bank (ECB) announced its intention to phase out its three-year bond-buying programme, as it had succeeded in bringing inflation to its target of just below 2%.  Interest rates now look to be put on hold until late 2019, and ECB President Mario Draghi's dovish tone weakened the euro which has recently buoyed equities. So what are the potential headwi...