JPMorgan and ING bullish on European stocks in contrarian Brexit trade

JPMorgan Asset Management and ING Bank NV see an opportunity in the exodus from European shares brought on by Britain's secession vote.

ING's Simon Wiersma started buying stocks of the region's companies in July, and Stephen Macklow-Smith of JPMorgan Asset said he may invest more after making some purchases following the UK referendum. The verdict on their bullishness has yet to be rendered: despite a rebound, the Stoxx Europe 600 Index remains below its pre-Brexit level.

Macklow-Smith and Wiersma are adding to European stocks at a time when most investors remain preoccupied by the region's political turmoil, slow growth and declining earnings. To them, better-than-expected economic data mean the euro area's recovery will stay on track amid accommodative monetary policy, leading to more equity gains.