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Investors search for opportunity in unloved Europe

European shares have recovered this year, but investors remain pessimistic and wade in gingerly

European stocks have been among the least liked investments for fund managers in recent months. Yet some investors, sensing Europe’s economic gloom lifting, are gingerly returning to the region.

European shares have rebounded strongly so far this year, with the benchmark Stoxx Europe 600 up 16%. That slightly lags behind broad markets in the US, where the S&P 500 is up 17%.

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