Why European stocks are not expensive, and what to buy

Europe’s earnings per share (EPS) recovery is underway and valuations are not expensive, however, there is no sign of euphoria despite froth elsewhere, according to Bank of America Merrill Lynch (BofAML).

The bank’s latest global research report said Europe’s EPS recovery was underpinned by booming macro data and recovering margins.

Find out where the European equities market is heading and what sectors BofAML are overweight in by clicking through the gallery.