Deep Dive: Bounceback increased volatility in European markets

Release of pent up demand

David Walton, manager of Marlborough European Special Situations fund, dives into European equities.

Europe has bounced back robustly from the depths of the pandemic. Economic growth in the eurozone reached 5.2% in 2021, according to the International Monetary Fund. This is a level not seen since the 1970s. Consumers and companies are spending cash built up during the crisis, when lockdowns and other restrictions meant they were enforced savers. And, in some sectors, particularly industrial companies, business activity is only now returning to pre-pandemic levels, which suggests scope remains for further growth. While this release of pent-up demand is clearly a positive for European ...