Invesco Optimistic About European Equities

Sally Ling

4 February 2013

Invesco’s UK-based European equity team are the latest commentators to voice their support for European equities in 2013. In their latest Monthly Summary, the team says that, attractive valuations, further scope for a reduction of tail risks and a gradual improvement in growth prospects for European companies, are all reasons for optimism.

“Financial markets remain more focused on the risk associated with the euro crisis than on the genuine progress being made in the peripheral nations and the less negative macroeconomic outlook,” Joel Copp-Barton, European product director at Invesco, said in a statement.

In Copp-Barton’s view, this persistently negative sentiment towards Europe is providing some “compelling stock-specific opportunities”, especially in such sectors as financials, transportation and telecommunications - areas that have largely been ignored by the market. He also believes that, in select areas of the pharmaceuticals, aerospace and commercial services sectors, growth dynamics are not dissimilar to consumer staples, but valuations are much more attractive.