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The outlook for Europe in 2013

The market's schizophrenic ability to switch between sunny optimism and crisis is nowhere better illustrated than the frequent swings in sentiment when it concerns the economic health of one of the top three trading blocs in the world. The eurozone - Germany, in other words - will eventually get around to starting a banking union and a measure of fiscal control from the centre, but the important point for investors is that the return from European equities next year promises to be greater than emerging markets.

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By Julian Hofmann,
21 December 2012

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