Europe still offers good value, says Axel Botte, strategist at Axa Investment managers. At 30 September, the risk premium on the European equity market was 7.1%, the monthly rise just 2bps.
The valuation gap between the major European markets widened in September. The British risk premium was 6.93%, 4bps more than the French market. The German market was slightly more expensive (RP: 6.66%).
Over the last month, the UK risk premium has risen by 8bps, versus 5bps on the French market and a decli