Gartmore's European team sees positive near term outlook

The Gartmore European Selected Opportunities Fund has benefited from selective exposure to leading financial stocks, particularly in the banking sector, which have risen sharply on an improving earnings outlook. The Fund is also exposed to cyclical stocks positioned to benefit from a rebound. Attractively valued, high quality, core defensive stocks such as utilities and telecom providers also feature in the portfolio.

Roger Guy and Guillaume Rambourg, Managers of Gartmore's £1.8 billion Gartmore European Selected Opportunities Fund*, see a positive outlook for Europe's market over the next three to six months.

"Recent data supports an upswing in European markets with leading indicators suggesting that the recovery is well under way" say Roger and Guillaume. Thanks to extraordinary government and central bank intervention, economic indicators and earning upgrades now signal an improvement in the overall health of the financial system".

"Despite the recent consolidation we believe that the positive story for equities is pretty much intact for the next three to six months, with equity inflows, and yet more upgrades at the GDP and corporate earnings level. However, longer term there are major risks and question marks looming, with inflation and interest rate rises topping the agenda".