Is the European equities rally set to continue?

Several factors have laid the foundation for equity gains in Europe. Strong moves by banks and defence companies have sparked a rally, with performance expected to broaden out as earnings growth rises. Germany’s large fiscal spending commitment on defence and infrastructure will also aid the Eurozone, which hopes its supply of liquefied natural gas will help to reduce electricity prices and inflation. In the US, the Federal Reserve cut interest rates by a quarter point in December, despite not meeting its 2% inflation target. The country’s labour market has continued to weaken, with job opening...