Paltry economic growth, a rally that has driven up stock valuations and record bond prices make the eurozone appear to be a terrible investment destination for investors. But analysts and economists alike are growing ever more optimistic about the monetary union’s growth prospects for this year.
The renewed optimism is a turnaround from just a month ago, when fund managers’ underweight positions for Europe were sitting at what Barclays at the time called “extreme levels.” That, however, was before the European Central Bank announced a massive bond-buying program that will pump US$1.3 trillion into the financial system.
In the two weeks since that announcement, the Euro Stoxx 600 has rallied more than 7%, and a number of European markets have climbed even higher. Germany’s DAX index is up 11% this year and trading at a 2015 high. France’s CAC has gained more than 9%, while Italy’s FTSE MIB is up 8.5%…
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