Euro strength negative for economic recovery

After three years of negative returns from European equities, M&G is one investment house that believes the only way is up for continental markets. The seven-year bull market enjoyed from the early 1990s has unwound in spectacular fashion over the last three years but many European stocks are now oversold, according to John Hatherly, head of research at M&G Investments. While the majority of European companies' revenues are generated on the continent, a number of blue chips are still paying the price of aggressive overseas expansion at the top of the market. Hatherly says: 'The poor pe...