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European stocks are on their path to the superiority of other major global stock markets this month, as fears aim to collect customs tariffs and the investors from stocks in Wall Street technology.
The Stoxx EUROPE 600 has increased by 6.6 percent so far in January, which is the best monthly performance in two years. The US S& P 500 index gained 3.2 percent, while Topix in Japan increased by 0.1 percent.
The FTSE 100 index in London has risen to a new record on Friday, and rose by 6.2 percent so far this month, which is the best monthly performance since November 2022, when the markets recovered after that in the fateful “Mini Mini” budget from Prime Minister Liz TRSS two months ago .
The gains sparked renewed hopes for a constant revival in the area justice Markets. While some people were sometimes strongly-DAX in Germany increased by five-where the entire Europe left the United States over the past decade.
“After many years of performance, much does not need before everyone becomes enthusiastic. Roland Calien, the strategic expert in Société générale, said that everyone is getting more warm from Europe.
Investors accumulated in American stocks last year amid excitement about the growth of artificial intelligence, with a small group of technical arrows that push again.
At the same time, the threats of US President Donald Trump's tariff weighing Europe, which sends nearly five exports every year to the United States, while local political crises in countries such as France reduce the appetite of investors to bonds and stocks alike.
But January witnessed the largest American shares in shares in the euro area for nearly a decade, according to Bank of America, where investors fled technology shares of rich value in favor of European defense and growth shares, including banks, pharmaceutical preparations and luxury retail dealers.
this week Selling global technology Analysts said that the Chinese company Deepseek in artificial intelligence has never been the fastest of this shift.
After artificial intelligence fluctuates, “Investors were heading towards. Mohit Kumar, the economist in Jeffrez, said that Europe,” said the region has less technology stocks.
In addition, Trump's most softening position on customs tariffs – threatened 25 percent duties on goods from Mexico and Canada as of February 1, but so far failed to reach the euro area with fees – was a satisfaction for investors.
“Europe's expectations were on the ground,” said Sharon Bell, a stock analyst in Goldman Sachs. “This has changed.”
After years of weak performance in Wall Street, European stocks are also traded near the widest evaluation Discount on the United States at least the 1980s, according to the data of Société Générale. Analysts say that the UK market in particular has benefited from low assessments.
“I was completely surprised by the increasing interest in the shares in the UK, and this may be due to the fact that the growth expectations are very high compared to the rest of Europe,” Bell said.
It is clear that it is cheap. It can also be seen as a hedge against technology. . . For diversification. “
The strong performance of European stocks comes even with the eurozone struggle to recover from a sharp increase in energy and the prices of foodstuffs caused by Russia's wide invasion of Ukraine, while the American economy continues to grow strongly. Data this week showed the economy of the euro zone Unexpected stagnation In the fourth quarter.
However, the possibility of further discounts in interest rates by the European Central Bank may chant investors, analysts said. In the United States, the markets believe that inflationary pressure will force the US Central Bank to maintain higher rates for a longer period.
“If the market begins in a state of horror around inflation in the United States, it will also be more positive for European shares compared to,” said Calwyan of Socgen.
Additional reports by Ray Douglas
