WisdomTree's Gannatti: European equities still attractive despite Italy risk

Exporters to perform well

Chris Gannatti, head of research in Europe at WisdomTree, has said the combination of a depreciating euro and Italian political risk has created opportunities in European exporting stocks.

Barring a black swan event, such as Italy leaving the European Union, Gannatti remained positive about the outlook for Europe over the next few years, pointing to strong global growth and relative attractive valuations. Speaking to Investment Week, Gannatti was particularly bullish on  large-cap exporting stocks that performed poorly last year following the 14% rally in the euro versus the US dollar. Furthermore, he said multi-national exporters would also provide a natural underweight to the Italian market, which was primarily made up of domestic stocks. The research head said it ...