“European markets soar amid problems in the US: Trump’s policy pushes investors to EuropeEuropean stock markets are soaring as investors reorient towards European assets due to Trump’s trade policy. The Stoxx 600 index
is outperforming the S&P 500 by a record 18%”, — write: unn.ua
This was reported by Bloomberg, writes UNN.
DetailsAs reported, for five consecutive months, eight of the world’s ten best-performing stock markets are in Europe. This list includes the German DAX index with a rally of more than 30% in dollar terms, as well as peripheral markets such as Slovenia, Poland, Greece and Hungary.
The pan-European Stoxx 600 index is outperforming the S&P 500 by a record 18 percentage points in dollar terms, boosted by Germany’s historic budget spending plans and a stronger euro.
Market participants say that this is not all, amid the fact that stable corporate income and attractive valuations make the region a safer bet when concerns about trade and budget debt cover the US economy.
“Europe is back on the map,” said Frederick Carrier, Head of Investment Strategy at RBC Wealth Management in the British Isles and Asia.
In the last two months, we have received more questions about Europe than in the last 10 years
It is reported that if this growth continues, it will be a turning point after years of stagnation in European markets. And the rally may just fuel itself: due to the fact that stocks on the continent are growing, they are likely to attract fresh assets from all over the world.
Analysts at UBS Group AG said in a recent note that the outflow of investors from American assets will lead to an investment of 1.2 trillion euros (1.4 trillion US dollars) in the European stock market over the next five years. An early impetus to growth this year was the proposal of Berlin, known for its strict budget savings, to spend hundreds of billions of euros on infrastructure and defense.
Economists at Citigroup Inc. expect the reform to spur growth across the Eurozone from the second half of 2026.
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At the same time, on the other side of the Atlantic, investors are again watching for a recession amid fears about inflation and America’s budget deficit. Sentiment regarding treasury bonds suffered in May after the Moody’s rating agency stripped the United States of its highest credit rating, and bond yields also rose in response to Trump’s proposals to reduce taxes.
And as a blow to the president’s trade agenda, a US court issued a rare ruling blocking many of the import taxes he threatened and imposed on key partners.
S&P 500 recovered in May, but still lags behind for the year. The index increased by only 0.5% in 2025, compared to a 12% jump in the MSCI All-Country World Index excluding the USA.
It also ranks 73rd among 92 indices tracked by Bloomberg. Beata Mantey, Head of European and Global Equity Strategy at Citigroup, said that the Eurozone is in a “relatively good position”, due to the fact that the European Central Bank has opportunities for further interest rate cuts, while stock valuations are not overestimated.
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