European equities look on course to achieve double-digit growth before the year is out, according to one investment manager who is predicting a return to 2007 highs.
Dolfin's chief investment officer said that Macron has provided a "trigger point" for a longer-term rally as markets come to appreciate the region's strong fundamentals. "The European project and the euro zone currently has all the right ingredients for investors to be in there," he said.
"The European project and the euro zone currently has all the right ingredients for investors to be in there," Vassilis Papaioannou told.
"Looking ahead, I think that major European indices could go back to the 2007 highs which has a lot of room to go," he noted.
French banks tumbled in morning deals Monday, with Societe Generale leading the losses with a 1.8 percent drop.
With the French election out of the way, and Germany's September federal election considered of little threat to the European project, Papaioannou said the spotlight would be on the European Central Bank (ECB).
Papaioannou said he "absolutely" expects the central bank to tighten its monetary policy and more to increase interest rates before the year is out.
"We've had some macro- and political catalysts … Inflation looks on target and (ECB) President (Mario) Draghi has already set the tone for a potential hike or potential tapering towards the end of the year."
Source: Bloomberg
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