Where next for the European rally?

The IMA Europe ex UK sector rose almost 30% in the year to the end of August as investors re-evaluated their stance on the continent's beleaguered economies. The sector has pulled ahead of its UK All Companies, Global and Global Emerging Markets counterparts as Asian and emerging market sentiment has dipped. European special situations, recovery and value strategies have done particularly well as out-of-favour sectors, such as automobiles and financials, have benefited most from the improved outlook. Be selective Although managers think more gains are to be had, they caution that...