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By Fabian Frankenberg, investment specialist at Deutsche Asset Wealth Management
2014 showed a very solid start for European Equities. The MSCI Europe index rose around 3% end of February, further outperforming the US as well as the emerging markets. It seems that investors recognize that growth in the Euro area is gaining momentum. In Q4, GDP expanded by 0.3% after 0.1% in Q3 2013.
Moreover, in 2014 and 2015, we expect sequential growth to improve driven by better export performance, less fiscal drag, as well as less need for households to repair balance sheets after several years of aggressive rebuilding. This improvement in growth is not only happening in the core; the Spanish composite PMI, for example, rose by 1pt to 54.8 for...
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