France

London's financial community feels it is fighting a war on two fronts: the prospect of being hamstrung by pending EU measures and suffering targeted attacks from the government at home.

The past eight months have been remarkable for European equity markets.

British pride has taken a knock recently as both Germany and France this month reported their economies had expanded for the second consecutive quarter. Britain is pinning its hopes on the Q4 of 2009 bringing an end to its recession.

National pride was dented when Germany and France posted positive economic growth in the second quarter yet the UK remained in recession. Since then the UK has suffered the ignominy of seeing expectations for the third quarter outturn scaled back as industrial...

There has been a sea change in the climate for investing in equities since the beginning of the year. In January, credit spreads were pricing in a ‘Second Great Depression', banks were bust on mark-to-market accounting and companies had shut factories...

Having recorded further heavy losses in early 2009 to reach a low point in March, share prices have rebounded strongly in recent months.

Diverse sector at the forefront of downturn over past year, with just eight funds producing positive returns to investors

There is little doubt the tide is turning for one of the most unloved regions. Investor sentiment towards Europe in July, as measured by the Bank of America Merrill Lynch fund manager survey, was at its lowest level since 2003.