An expected improvement in the euro zone's fortunes could mean now is a good time to get into European equities, with the asset class attractively priced.
Analysts are expecting official figures this week to show the euro zone economy will grow for the first time since 2011. The last time the euro zone climbed out of recession was in October 2009, when the price-to-book ratio for the pan-European Euro Stoxx 50 Index was at 1.5 percent.
Today that same ratio is at 1.29 percent, with a lower ratio meaning the stock market could be undervalued. The average price-to book ratio - which is used to compare a stock's value to its book value - for the S&P 500 is currently at 2.42 percent. The Nikkei's is currently at 1.7 percent. The price-to-earnings ratio for the Euro Stoxx 50 is also currently below those major indexes.
(Read More: European Equities Have 'Rarely Been So Appealing')
JPMorgan maintained its overweight view on European equities on Monday, relative to emerging markets. Wage cost gaps between the core and periphery in Europe are shrinking, the bank's research team said in a note, adding that the periphery's current account deficit has virtually disappeared with measures for the European Central Bank further stabilizing financial markets.