Eurozone equities to deliver a strong performance in the next 3 years

2015 should be a vintage year for European equities. The Eurostoxx index should deliver a strong performance (above 20%), driven by monetary policy change, investment plans, weaker currency and better domestic news flow. 

Capital Economics notes .....

• France and Italy would particularly benefit from implementation of reforms. All theses driver should support European equities until 2017.
  
  
• We expect the German DAX to suffer from country rotation within the euro area and some margin squeeze due to higher wage growth. 
  
  
• In the UK, 2015 should be marked by the General Election, triggering some volatility and pushing the risk premium on the FTSE 100 higher as the debate on the EU exit gains momentum.