European Stocks On A Tear But Still Look Cheap

The European Stoxx 600 index signed off last week on a high note. It is set to clock its ninth monthly gain during 2013, says Bloomberg. European equities have so far returned 16% in 2013, and most fund managers report that investors are still bullish on Europe.

Since a picture is worth a thousand words this is an opportune moment to study the European stocks story as told by a collection of charts made available in the ‘Strategy Data Gallery’ for Europe by Morgan Stanley analysts Graham Secker, Ronan Carr, Matthew Garman, Krupa Patel and Hanyi Lim.

European stocks’ trend

Technically, the MSCI Europe is trading above both its 50-day...