The underperformance of European stocks relative to their U.S. counterparts may be ending, even as investors await the details of a plan for the European Central Bank to join forces with governments to ease the euro area’s debt crisis.
European stocks rose to the highest in eight weeks as investors bet central banks will add to measures unveiled by the region’s governments to contain the sovereign-debt crisis and data from China and Japan fueled optimism Asia will drive global growth.
European stocks rose for a fifth week as investors bet central banks would add to measures to stimulate economic growth, with the Stoxx Europe 600 Index paring some gains on concern that risks to a recovery remain.
European equities will climb 12 percent through the end of next year, beating 2010’s gains, as rising earnings and record-low interest rates help companies overcome the sovereign-debt crisis, a Bloomberg survey of 13 strategists shows.
When European equity strategists at the world’s largest investment banks forecast a rally in 2011, UniCredit SpA’s Tammo Greetfeld said they were wrong. He was vindicated as stocks tumbled the most in three years.