Investors hunt for bargains in Europe despite deflationary threat

Wealth managers are adding to Europe following the market correction of the last few weeks, despite concerns remaining about the threat of deflation in the region.

The renewed interest in Europe comes despite a raft of disappointing data from the continent, and follows the results of EBA stress tests on the banking sector, which saw 24 banks fail to meet capital adequacy requirements.   European equity markets have sold off in the last few weeks, with the Eurostoxx down almost 7% over the last month.  Stocks have partially bounced back from October's volatility, but fears of a Japan-style deflationary spiral remain. In September, eurozone inflation was just 0.3%. However, some fund buyers believe pessimism on the region is overblown, and the ...