Europe Stocks Approach Cheapest Ever as Invesco Buys Repsol

Two years of losses have pushed European equities toward the lowest valuations ever, prompting fund managers from Invesco Ltd. to JPMorgan Chase & Co. to increase holdings in Spain, Italy and Germany.

While the Euro Stoxx 50 Index has fallen to 0.9 times book value, cheaper than any time except the week markets bottomed in March 2009, Invesco is betting on Repsol SA, the Spanish oil producer. London-based Artemis Investment Management LLC is buying stock in Amplifon SpA, a hearing aid maker in Milan. Fidecum AG is adding shares of German lender Aareal Bank AG.