Having overcome a series of political hurdles, European markets are looking ahead to Italy's general elections in May as the next potential obstacle.
Having seen a 20% rally in sterling terms in the past year,Sam Morse, manager of the Fidelity European Values (FEV) investment trust, is wary of high share price valuations, although he is comforted by the fact company profits, or earnings, are growing.
In this video interview, he discusses the pockets of value he can seen in energy, financials and healthcare stocks.
Morse has run the trust since January 2011. In the past five years the £932 million fund has delivered a total shareholder return of 117%, ahead of the MSCI Europe ex-UK index return of 99% but below its 126% sector average. In the past year the shares have edged ahead of the peer group average with a 29.5% return, beating the index return of 24%. At 224.4p on the close of 23 August they stood 8.8% below their net asset value, compared to their one-year average discount of 11%.