European equities better value than US, says Barclays

European equities offer better relative value than US stocks, and further "catch-up potential", Barclays said in an equity strategy note on Wednesday.

The bank, which noted that equities in general look "toppish", said: "Positioning on Europe is bearish, valuations are cheaper and its Value tilt could help if rotation continues."

The bank also pointed out that this time around, the European Central Bank is not behind the curve and the EU fiscal agenda is turning pro-growth.

"If the proposed recovery fund becomes reality, it could boost domestic growth expectations and benefit sectors like utilities, infrastructure/construction, autos, telcos, as well as small caps, periphery and financials," it said.