1026 GMT - European companies' earnings will continue to grow, with the potential of semiconductor and financial stocks on the continent especially underappreciated by investors, UBS strategist Gerry Fowler writes. "Growth is priced too cheaply, especially where estimates are still rising," Fowler writes. Banks, pharmaceuticals and industrial goods sectors--which together dominate the Stoxx 600--are expanding, which in turn should drive equities higher, the strategist says. Bond yields on the continent have likely peaked, potentially turning the tide on "the single biggest drag" on European valuations this year. "If that headwind stalls, the lid comes off an earnings-led rally," Fowler writes. The Stoxx 600 slips 0.2%.