European sovereign debt does not compensate investors adequately for the risk they are taking, says Axa Investment Managers' chief investment officer Chris Iggo.
Spain finally emerged from recession in the first quarter of 2010, following nearly two years of negative growth.
Fund managers are buying into southern Europe as macro-economic instability creates opportunities, amid fears Greek contagion could push economies in the region into recession.
The FTSE fell 0.3% today, defying falls more than four times as large on most of Europe's major markets.
Standard & Poor's has downgraded Spain one notch from AA+ to AA, pointing to a slower than expected growth rate.
Baring Europe Select Trust manager Williams foresees increased interest in low-valued European companies
This week's panel discusses European equities and the impact of the Greek tragedy