European shares stumbled at the beginning of the week, as jitters over higher inflation, higher interest rates and tensions in Ukraine rippled throughout the global stock market. 

But Jason Hollands, of the trading platform Bestinvest, was optimistic on the long-term outlook for European stocks.

“Across Europe, profit margins are at near record levels as many firms have strong pricing power because of their very strong brands – such as Heineken, LVMH Moet Hennessy, L’Oreal and Richemont,” he said. 

Samantha Gleave, the co-manager of the Liontrust European Growth fund, agreed that big consumer brands were especially attractive because of their ability to surf rising costs. She pointed to the Danish jewellery seller Pandora, whose share price has risen by 27pc in the past year. 

“It has recorded organic sales growth in the high teens and has been improving its margins. It has also invested heavily into its online activities, which have been growing strongly because of the work-from-home trend,” she said.

Ms Gleave also highlighted the car-makers Stellantis, the owner of the Peugeot and Fiat Chrysler brands, and Daimler, which owns Mercedes-Benz. 

 “These companies are enjoying the benefits of pent-up consumer demand,” she said. “They also have very strong pricing power.”