Europe’s economic recovery continues - J.P. Morgan Asset Management

Europe’s economic recovery continues

Contributor J.P. Morgan Investment Trust Team


After a long period in the doldrums, European company earnings—the money they make after tax—now have plenty of room to rise as the region continues its economic recovery. We do not expect Brexit to cause a recession in Europe and, if political risks continue to fade, investors could well start to focus more closely on the brighter economic and corporate picture.

Meanwhile, unemployment in Europe is falling, but it is still higher, leaving room for improvement. From the market’s point of view, the change in unemployment matters more than the level of unemployment itself, so an ongoing fall in unemployment could support both the economy and markets.

Retail sales and industrial production data are also recovering, showing that the recovery is not confined to one area alone, and surveys that measure business confidence are suggesting that growth should remain healthy.

What this could mean for investors

European investments made a strong start to the year, and with most of the money that investors withdrew from the market last year yet to return, it is not too late to invest. Investments in European companies could benefit as the ongoing economic recovery feeds through into higher earnings for the region’s companies. They could also gain a boost from the European Central Bank’s from fading risks on the political front, which would in turn give the economy a further boost.

Our range of European investment trusts is specially designed to open up access to the most attractive investment opportunities in the region.

Related products:

JPMorgan European Smaller Companies Trust plc >  
JPMorgan European Investment Trust plc – Growth Shares >  
JPMorgan European Investment Trust plc – Income Shares >  

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