How long until European equities reach a new market high?

Stephen Macklow-Smith, manager of the JPMorgan European investment trust, takes a closer look at the factors that could drive an encouraging earnings story on the continent.

While US shares have made headlines at new highs, Europe is still appreciably below its April 2015 high - so is there more room to run for European equities? It seems there is a discrepancy between what US shares are telling us about the economy (it is strong) and what bonds at record low yields are telling us about the economy (suppressed growth and limited inflation for the indefinite future). With the European Central Bank as a non-economic buyer of bonds, there is a lot of competition for a relatively scarce asset, which is a sound technical explanation for what is going on with t...