European shares have recently risen, driven by soft business activity data that strengthens the case for more monetary easing by the European Central Bank (ECB) this year. As the economy gradually finds its footing, adding fundamentally sound European companies such as Novartis AG (NVS), Unilever PLC (UL), and Siemens Aktiengesellschaft (SIEGY) to your watchlist could be wise.
In early 2024, the euro area saw modest growth, with GDP expanding by 0.2% in the second quarter. While this may not seem like much, the fact that the economy has shifted from stagnation to growth is a promising signal for investors. However, this recovery has been uneven. While sectors like exports and government spending have bolstered growth, domestic demand remains sluggish, with consumers hesitant and businesses cautious about new investments.
