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Knuthsen: Why the bull market in European equities will return

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Saxo's Teis Knuthsen is still confident that the global economy will grow between three and four percent this year. That's despite a disappointing first quarter, particularly in the US. Teis believes the US economy will be driven up by increased domestic demand. He also says that Europe is moving towards recovery while India is doing 'quite well' and China's absolute growth is still 'fairly high'.

But what about geopolitical risks such as a Grexit or even a Brexit? Teis says many of these problems are local and won't have that much effect.

Since the end of last year, Teis has been positive on European equities. He acknowledges that the market is undergoing a correction, with the DAX losing eight percent since the beginning of April. He says in order for the bull market to be sustained, there needs to be more evidence that corporate earnings are rising.