Pease signals strengths of European markets

The manager of the New Star European Growth fund says several factors point to potential European relative strength rather than weakness in the year ahead. European governments are in a stronger position than their US or UK counterparts, he says. "Germany is projected to borrow 2.9% of its gross domestic product in 2009, far less than the burgeoning 7.2% the UK is expected to borrow. This means there is still considerable room for fiscal stimulus without putting undue pressure on government borrowing costs," says Pease. While the European Central Bank (ECB) was criticised for movin...