Positive growth rates in Europe as 'recovery cycle' takes effect

The outlook for European equity markets is positive, with recent forecasts indicating a growth rate of 2.4%, representing a significant pick-up in economic activity. James Buckley, manager of the Baring European Growth fund, says: "Improvements in reporting, declining unemployment rates and the additional impetus provided by Eastern Europe are serving as a real boost for investors in developed Europe." He says Europe is in the early part of a recovery cycle and he expects earnings growth and positive earnings surprises in the second half of 2007. He adds: "Price/earnings ratios are stil...