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By Rob Jones, Co-head of European Equities, Union Bancaire Privée, UBP SA
The strong Summer rally in European Equity markets, which spluttered into life in June, has continued at a more gentle pace as we enter the fourth quarter of the year. This move up has been on the whole driven by an expansion in rating rather than upgrades to earnings, which are broadly still trending negatively. As such, the strength of the rally has been somewhat at odds with the company news-flow. As we enter Q3 results season a number of businesses, particularly in the industrials space have already issued profits warnings and continue to highlight ongoing weak volumes in Europe and soft demand in Emerging Markets. This would suggest that the positive momentum and recovery the market...
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