The 17-nation euro zone bloc finally emerged from 18 months of recession after gross domestic product data on Wednesday showed the economy growing 0.3 percent in the second quarter.
But for investors looking at the data as a trigger to increase exposure to European stocks, some analysts have advised to wait.
"It is too early," said Andrew Su, CEO of Sydney based firm Compass Global Markets. "It will only take more credit downgrades or a crisis in Italy or Spain to see renewed market volatility."
Industry watchers are well familiar with the ongoing problems of the euro zone, where heavy indebtedness, sky-high unemployment and lackluster growth have dogged progress in the region for years.
Periodical flare-ups of tension, more recently over the banking crisis in Cyprus and political uncertainty in Italy, have continued to shake investor belief in a sustainable recovery in the region.
"There are many structural problems with many of the economies in the euro zone that are far from resolved and youth unemployment across the region is a staggering 25 percent," he said.