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11.12.2014 12:50:24

Eurozone equities poised for re-rating - by Martin Skanberg, Fund Manager, European Equities.

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Eurozone equities poised for re-rating

December 2014

Martin Skanberg, Fund Manager, European Equities

The case for eurozone equities is growing stronger as sovereign QE now seems more likely and earnings improvements are on the horizon.

The chances of the European Central Bank (ECB) engaging in sovereign bond purchases have risen in recent weeks. There are several existing ECB stimulus programmes that are yet to run their course � notably the targeted long-term refinancing operations and asset backed securities purchases. Nonetheless, recent rhetoric from central bank policymakers suggests we need to allow for the possibility of an announcement on sovereign quantitative easing (QE) in 2015, probably in either the first or second quarter.  
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