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(FABIAN BIMMER/REUTERS)

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European auto sector running on fumes

Cycles, like circles, can be vicious. Nowhere more so than in Europe’s automotive industry. This is the cyclical sector most shunned by investors at present, with car makers and parts suppliers trading on an average price-earnings multiple of just over six. That is worse than miners on about nine, or construction and media, where average sector P/Es are in double digits.