Europe’s stock market is firing on all cylinders and drawing money managers who say this rally will be more durable than just another short-term trade.
Whether it’s earnings, economic growth, sentiment surveys or fund flows, market metrics across the board show a major shift is underway in European stocks. The price action reflects that. The Stoxx Europe 600 Index gained every day last week in its longest streak since June.
“There is definite excitement about Europe,” said Helen Jewell, international chief investment officer for fundamental equities at BlackRock Inc. “The region’s resilience has surprised the market and demand remains a lot firmer than had been expected.”
For a long time, one of the big draws of European stocks was that they were extremely cheap compared with the US. But with Europe Inc. reporting its best earnings growth in four years at 17%, and the strongest economic momentum since March 2023, more strategists see improved fundamentals underpinning this rally.
