Historical Record: European Stocks Confidently Outpace American Ones.

European Stock Markets Are Rising

European stock markets have shown incredible development, outperforming the American S&P 500 index in the last quarter. This growth has been made possible by an unexpected increase in interest in European securities.

Despite expectations that Donald Trump's 'America First' policy would negatively impact European markets, trade indicators have risen. This has happened due to the uncertainty over Trump's tariff policy and job cuts in the U.S.

Germany's fiscal plans aimed at increasing defense and infrastructure spending have been a key factor in positive market sentiment. This has created prospects for the region and business. Investors have begun to pay attention to undervalued European securities.

European companies have been undervalued.

This year, regional equity funds received a capital influx of $21 billion. Surveys showed that investors favored European markets at a rate of 39%, the highest figure in over three years.

The defense industry sector and companies that can benefit from Ukraine's reconstruction projects are showing the most growth.

To date, Germany is the most powerful country in Europe. Its DAX index has risen by 13% and positively influenced the euro, which has approached the level of $1.10. There is a forecast that by the end of the year, the euro could reach $1.20, depending on Trump's policies.

Technology indices Nasdaq 100 and S&P 500 have seen a technical correction, but experts warn that the market may be short-lived and depends on governments' strategies regarding financial plans. It is also necessary to consider structural issues, such as the lack of a unified fiscal policy and the limitations of European capital markets.

'The sudden surge of euro-optimism may be slightly exaggerated,' analysts note.