Improving economic conditions and strengthening company earnings in Europe are signals that diversified exchange traded fund investors should keep in mind when looking for areas of potential growth after a multi-year run in U.S. markets leaves less opportunities at home.

“We are upgrading Eurozone equities to overweight on a tactical basis due to a combination of stronger growth and earnings momentum, attractive valuations and light investor positioning,” BlackRock’s Maria Eugenia Heyaca, Investment Strategist for ETF Investment Strategy, and Madeline Zeiss, Associate for ETF Investment Strategy, said in a research note.

The Eurozone macroeconomic environment has steadily improved, with a significant uptick in manufacturing and services PMIs over the end of 2016. Eurozone growth may continue to pick up speed ahead after the European Central Bank revealed increased loan demand and easing of terms and conditions on new loans to help stimulate the economy.

Additionally, market analysts have upwardly revised their projections on Eurozone markets as a weakening euro currency, stronger global demand and steepening yield curve help support revenue growth, potentially signaling a turn in the prolonged earnings recession.

Potential investors, though, should keep an eye on further political risks, such as the U.S. anti-trade policies, Brexit negotiations and elections in Netherlands, France, Germany and Italy.

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