Small-caps still offering opps in troubled region

ON EUROPE

Last year was a volatile one for European equities, with investor sentiment inevitably affected by the eurozone's problems.

However, the first few of months of 2012 have been more encouraging for investors. European small-cap equities have registered very strong performance year-to-date, with the HSBC Smaller Companies Europe ex UK Index outperforming European large-cap indices and generating a total return of 12.6% in sterling terms as at the end of March. Markets have been boosted by policy moves. The combination of a permanent bail-out fund, set to start by the middle of the year, and the availability of low-cost loans from the European Central Bank has helped to ease contagion fears. Eurozone finance m...