Can a rising tide lift all European stocks?

Optimism on the corporate earnings outlook in Europe for 2017 has become more consensual than contrarian recently, and with good justification.

Macroeconomic data from the eurozone, especially France, is more buoyant than it has been for many years and the global demand environment continues to offer support.  There is the perennial political noise, but it is worth remembering rising markets always climb a wall of worry. The key risk in 2017, namely that the French Presidential Election will deliver a candidate committed to 'Frexit', still looks, on balance, unlikely.   The European market now trades on a forward earnings multiple of 15x. This is below the US at over 18x, but also above its long-term average of 13x. Analysts,...