"European markets are still fairly positive as the case for investing in the U.S. is much lower because valuations there are much higher and ability to grow earnings harder," said Mike Hewson, chief market analyst at CMC Markets.
"I think there will be outperformance in Europe simply because energy prices have come down a lot more than perhaps was thought to be the case last year," Hewson said., harmonised to compare with other European Union countries, rose by a less-than-anticipated 9.2% on the year in January, helping to reassure markets that prices have peaked.
It was unclear if China will come "roaring back" in the second half of the year to drive the global economy, and if it does, whether that would trigger another round of inflationary pressures, Major said. "The U.S. is on fire... I think I would want to be overweight U.S. equities for the next three to five years because they've got energy independence, a robust economy," Major saidEurope's gas rollercoaster