The Fidelity European Trust has produced a 17pc capital return since it was first tipped by Questor in April last year. In doing so, it has outperformed the FTSE 100 index by 11 percentage points. Over a longer period, the company’s performance is even more impressive. In the past five years, for example, its total return amounts to around 100pc while the FTSE World Europe ex-UK index, which is the trust’s benchmark, has produced a rather more modest total return of 64pc. Of course, European equities continue to face an uncertain near-term future. Although the Eurozone economy expanded by 0.3pc in the first quarter of the year, a restrictive monetary policy implemented in response to rampant inflation is acting as a drag on activity levels. Its effects could persist in the short run as the full impact of previous interest rate rises are felt following the passing of time lags. However, with inflation now standing just 40 basis points above the European Central Bank’s 2pc target, interest rate cuts are on the near-term horizon. A more accommodative monetary policy could both prompt improved operating conditions for European-focused firms, and encourage investors to take a more upbeat view of the region’s...