Insightful Word
  • Investing
  • Stock
  • Economy
  • Politics
  • Investing
  • Stock
  • Economy
  • Politics
No Result
View All Result
Insightful Word
No Result
View All Result
Home Investing

Why European stocks are set to outperform US markets in 2025

admin by admin
March 4, 2025
in Investing
0
Why European stocks are set to outperform US markets in 2025
0
SHARES
4
VIEWS
Share on FacebookShare on Twitter

Chances of European stocks outperforming their US counterparts in the near to medium term are “probably the highest they’ve been in quite some time,” according to Andrew Rymer of Schroders.

EU already did better than US equities last month that were mired in concerns of fly-high valuation and political risks.

The Stoxx 600 went up 3.3% while the S&P 500 sunk 1.4% in February.

More importantly, there’s reason to believe that US stocks will continue to trail Europe through the remainder of this year as well.

European stocks offer relief from tariff uncertainty

Investors may remain interested in European stocks over the next few quarters as the region offers a “sense of relief in terms of tariff uncertainty,” says Naeem Aslam of Zaye Capital Markets.

President Trump has announced plans of a 25% tariff on imports from the European Union, adding the levies will apply to “cars and all other things.”

Investors may prefer European stocks against such a backdrop as “we know exactly what to expect,” which makes it easier to brace for the new reality, Naeem added in an interview with CNBC today.

Plus, the new tariffs and a potential trade war they may trigger are a meaningful headwind for the US stocks as well in 2025.

European stocks are much more attractively priced

Aslam expects the United States to underperform European equities this year also because the valuations tied to the latter are much more attractive.

“Price-to-earnings discount in Europe is 40% as of late 2024,” he added in the CNBC interview.

Meanwhile, valuations have turned concerningly high across the Atlantic on the back of continued momentum in artificial intelligence.

And while the US tech firms have been growing at an accelerated pace to the AI frenzy, the recent DeepSeek development suggests a slowdown may be brewing, which further makes Europe a “great place to be,” according to the Zaye Capital experts.

European stocks could benefit from lower interest rates

Finally, there’s reason to favour European stocks over US names because the recent economic numbers suggest the Federal Reserve is unlikely to cut interest rates in 2025.

In comparison, “there’s a clear path for monetary policy easing” in Europe that will serve as a meaningful tailwind for the regional equities this year, according to Dan Boardman-Weston of Bri Wealth Management.

On Tuesday, the European Commission also revealed plans of mobilizing more than $800 billion to increase the bloc’s defense spending amidst geopolitical escalations.

Such a move could further help drive the price of European defense stocks up in 2025.

All in all, the European stock markets look strongly positioned to outperform the US as they “have encouraging earnings prospects and are benefitting from an upsurge in share buybacks, as well as trading on cheaper valuations,” according to Schroder’s Andrew Rymer.

The post Why European stocks are set to outperform US markets in 2025 appeared first on Invezz

Previous Post

From cheese to wine: Italian farmers lobby urges EU to fight back against Trump’s tariffs

Next Post

Crypto analyst picks top altcoins for maximum gains

admin

admin

Next Post
Crypto analyst picks top altcoins for maximum gains

Crypto analyst picks top altcoins for maximum gains

Trending News

FTSE 100 forecast: BoE decision, Diageo, Vodafone, GSK earnings

FTSE 100 forecast: BoE decision, Diageo, Vodafone, GSK earnings

January 31, 2025
Will the EU ‘pay a big price’ for not buying enough American exports, as Trump claims?

Will the EU ‘pay a big price’ for not buying enough American exports, as Trump claims?

October 30, 2024
Tencent announces a large buyback after addition to Pentagon list

Tencent announces a large buyback after addition to Pentagon list

January 8, 2025
Subscribe to Insightful Word


    Recent News

    ARB eyes recovery as Arbitrum taps agentic DeFi revolution with $1M grant

    ARB eyes recovery as Arbitrum taps agentic DeFi revolution with $1M grant

    June 5, 2025
    Ripple releases $2.18B in XRP, price dips 2%

    Ripple releases $2.18B in XRP, price dips 2%

    June 5, 2025
    Nintendo Switch 2 launch sees shortages as 2.2M vie for units in Japan

    Nintendo Switch 2 launch sees shortages as 2.2M vie for units in Japan

    June 5, 2025
    Why Bank of America sees 13% upside on Roblox (RBLX)

    Why Bank of America sees 13% upside on Roblox (RBLX)

    June 5, 2025

    Recent News

    ARB eyes recovery as Arbitrum taps agentic DeFi revolution with $1M grant

    ARB eyes recovery as Arbitrum taps agentic DeFi revolution with $1M grant

    June 5, 2025
    Ripple releases $2.18B in XRP, price dips 2%

    Ripple releases $2.18B in XRP, price dips 2%

    June 5, 2025

    Latest News

    • ARB eyes recovery as Arbitrum taps agentic DeFi revolution with $1M grant
    • Ripple releases $2.18B in XRP, price dips 2%
    • Nintendo Switch 2 launch sees shortages as 2.2M vie for units in Japan

    About Insightful Word

    • Contacts
    • Cookie Notice
    • Privacy Policy
    • Terms of Service
    • Trading tools
    • Contacts
    • Cookie Notice
    • Privacy Policy
    • Terms of Service
    • Trading tools

    Copyright © 2025 Insightfulword.com. All Rights Reserved.

    No Result
    View All Result
    • Investing
    • Stock
    • Economy
    • Politics

    Copyright © 2025 Insightfulword.com. All Rights Reserved.