Reasons to be confident in Europe

There are a number of reasons supporting a rosy euro-zone outlook argues Roger Guy and Guillaume Rambourg, Co-managers of the Gartmore European Selected Opportunities Fund and the Gartmore Sicav Continental European Fund.

One such reason can be found in the latest release of the Ifo institute’s sentiment index. The Munich–based research institute reported a rise in its sentiment index from 107.7 in March to 108.6 in April. Despite the dip in consumer spending following the value-added sales tax increase, the rising euro and falling U.S economic growth have failed to derail the economic upswing in Germany.

Adding to this momentum is falling unemployment which reached a five-year low in March and an emerging markets driven demand for German exports which rose 1.9 percent in February. In France, data released was also positive. French firms' business confidence rose in April from the previous month, beating economists’ expectations.