“European stocks are trading at levels that show investors anticipate no profit growth for 2013, increasing optimism among strategists who say equities will rise to a five-year high.
The Stoxx Europe 600 Index (SXXP) is priced at 11 times estimated profit, down from 13 before the financial crisis, according to data compiled by Bloomberg. Even though the region entered a recession last quarter, earnings will climb almost 5 percent next year, according to the average of seven strategist forecasts in a Bloomberg survey. They predict the benchmark gauge will gain 10 percent to the highest level since 2008.”
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