Invesco's Taylor says bad news priced in to European equities

Taylor, who is head of European equities, believes that analysts' forecasts do appear too optimistic, especially for industrial sectors, such as capital goods. However, he argues that a number of pressures of 2008 are waning, such as the fall in commodity prices and a diminishing threat of inflation. He also predicts further rate cuts from the European Central Bank. "Equity-market volatility measures are already at multi-year extremes, while credit spreads already build in distress and are at levels which have seen credit and equity market rallies in the past," he says. "Equity marke...