3 driving forces behind European equities in 2018: Schroders

SINGAPORE (Jan 2): Schroders is of the view that Pan-European equities will continue to enjoy good prospects in 2018 – even after their recent gains brought long-term valuations close to historic averages, with the MSCI Europe index up 9.3% year-to-date (YTD).

In spite of ongoing geopolitical events such as Italy’s impending May elections and ongoing Brexit talks in the UK, the global investment manager sees volatility around political events as a potential buying opportunity for active managers to purchase undervalued stocks.

In a Tuesday note, Rory Bateman, Head of UK & European Equities, argues that the regional market has potential to be driven by three factors, namely: improving corporate profit margins, lower inflation, and falling correlations.

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