Latest news with #EuropeanEquities
Bloomberg
a day ago
- Business
- Bloomberg
EasyB Is Widening the Transatlantic Valuation Gap
Euro-zone inflation paves the way for an ECB rate cut. That will further support European equities. Save To get John Authers' newsletter delivered directly to your inbox, sign up here. Please help us improve Bloomberg newsletters by taking a quick survey to share your thoughts on your signup experience and what you'd like to see in the future. Here's the link: And many thanks. Before it's here, it's on the Bloomberg Terminal
Yahoo
4 days ago
- Business
- Yahoo
Europe stocks stage world-beating rally as trade war backfires
(Bloomberg) — Europe's equities have emerged clear winners worldwide as the region's economic outlook brightens at a time when President Donald Trump's trade war hobbles US financial markets. Billionaire Steve Cohen Wants NY to Expand Taxpayer-Backed Ferry Now With Colorful Blocks, Tirana's Pyramid Represents a Changing Albania Where the Wild Children's Museums Are The Economic Benefits of Paying Workers to Move NYC Congestion Toll Brings In $216 Million in First Four Months Five months into the year, eight of the world's 10 best-performing stock markets are in Europe, according to data compiled by Bloomberg. That list features Germany's DAX Index with a rally of more than 30% in dollar terms, as well as peripheral markets such as Slovenia, Poland, Greece and Hungary. The pan-European Stoxx 600 Index is beating the S&P 500 by a record 18 percentage points in dollars, powered by Germany's historic fiscal spending plans and a stronger euro. Market participants say there's more to come as resilient corporate earnings and attractive valuations make the region a safer bet when concern over trade and fiscal debt grips the US economy. 'Europe is back on the map,' said Frederique Carrier, head of investment strategy for RBC Wealth Management in the British Isles and Asia. 'We are getting more questions about Europe now over the last two months than we did over the last 10 years.' The outperformance, if it lasts, will mark a turnaround from years of sluggishness for European markets. And the rally may just feed on itself: As stocks on the continent rise, they're likely to attract fresh assets from around the world, equity bulls say. UBS Group AG analysts said in a recent note that investors' shift away from US assets will channel €1.2 trillion ($1.4 trillion) into Europe's stock market over the next five years. An early impetus for this year's gains came from the proposal by Berlin — famous for its fiscal austerity — to spend hundreds of billions of euros on infrastructure and defense. Citigroup Inc. economists expect the reform to boost growth across the euro area from the second half of 2026. On the other side of the Atlantic, investors are on recession watch again amid concerns around inflation and America's fiscal deficit. Sentiment toward Treasuries took a hit in May after Moody's Ratings stripped the US of its top credit grade, with bond yields also climbing in response to Trump's tax-cut proposals. And in a blow to the president's trade agenda, a US court has issued a rare rebuke blocking many of the import taxes he has threatened and imposed on key partners. A proposed tax measure is also raising alarm on Wall Street as it would increase tax rates for individuals and companies from countries with 'discriminatory' tax policies, potentially driving away foreign investors. The S&P 500 rebounded in May, but remains a laggard for the year. The index has gained only about 0.5% in 2025 compared with a 12% jump in the MSCI All-Country World Index excluding the US. It also ranks 73rd among the 92 indexes tracked by Bloomberg. Beata Manthey, head of European and global equity strategy at Citigroup, said the euro area is in 'a relatively good place' as the European Central Bank has room to reduce interest rates further, while equity valuations aren't stretched. 'Of course if there's a US recession, no market would go unscathed, but the lack of exuberance in Europe makes it more resilient to a deeper selloff,' Manthey said. 'Investors had shunned the region for so long that inflows are still tiny compared with outflows of the past few years.' A slate of Europe's smaller markets is dominating the leader boards this year. Slovenia's blue-chip SBI TOP Index is the world's second-best performing gauge with a rally of 42% in dollar terms, behind Ghana's benchmark. Poland's WIG20 Index has gained 40%, while benchmarks in Greece and Hungary are up more than 34% each. Strategists at Societe Generale SA have recommended peripheral European markets this year, citing a wider risk premium as well as relative political stability. The team continues to predict an outperformance as they expect sovereign bond yields to be more protected than in some of the big spenders such as France and Germany. Defense stocks have been among the biggest winners this year, with seven of the 10 best-performing stocks in the Stoxx 600 related to the sector. All have surged at least 90%, with German contractors Renk Group AG, Rheinmetall AG and Hensoldt AG leading the pack. Banks and insurance stocks have also outperformed in 2025. 'What's not to love about European equities?' said Florian Ielpo, head of macro research at Lombard Odier Investment Managers. 'In the US you're punished for taking risk, but in Europe you're rewarded for it. Inflation looks contained, and there's finally some visibility. In the US, you're still wondering what will happen tomorrow, what tweets will you see.' Corporate earnings have been a bright spot, with first-quarter profits at MSCI Europe companies rising 5.3% compared with expectations of a 1.5% decline, according to data compiled by Bloomberg Intelligence. While many executives tempered their outlooks given lingering trade uncertainties, fewer analysts have cut earnings estimates in the past weeks, suggesting the worst of the downgrades may be over. To be sure, the global trade outlook remains a key risk. A federal appeals court has offered Trump a temporary reprieve from the ruling threatening to throw out the bulk of his tariff agenda. The president also said he would be increasing levies on steel and aluminum to 50% from 25%. Many European industries including miners, automakers and luxury goods are heavily exposed to international markets for revenue. Analysts this year have reduced Stoxx 600 earnings estimates for the coming 12 months by about 1.4%, according to data compiled by Bloomberg. Some market forecasters still bet European stocks will race past their US peers, with the team at JPMorgan Chase & Co. calling for the biggest outperformance on record. On average, a Bloomberg survey of 20 strategists found the Stoxx 600 is expected to gain another 1% from current levels. 'For the first time in a really long time I do believe there's a chance that European stocks can outperform the US market,' said Francois Rimeu, a strategist at La Francaise Asset Management. 'Now for this outperformance trend to hold, earnings will need to show some real growth next year.' —With assistance from Leonard Kehnscherper, Kwaku Gyasi and Michael Msika. 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Yahoo
28-05-2025
- Business
- Yahoo
Press Release: GAM Investments Strengthens European Equities Platform with Appointment of Leading Investment Team
GAM European Equity Team Photograph Zurich: 28 May 2025 PRESS RELEASE GAM Investments Strengthens European Equities Platform with Appointment of Leading Investment TeamTom O'Hara, Jamie Ross and David Barker join GAM Investments to manage flagship GAM Star European Equity and Continental European Equity funds GAM Investments is pleased to announce the appointment of a new European Equities team comprising Tom O'Hara, Jamie Ross and David Barker. As of 15 May 2025, the team has assumed investment management responsibilities for the GAM Star European Equity and GAM Star Continental European Equity funds. This highly regarded investment team brings with them a style-agnostic, high-conviction investment approach that complements GAM's longstanding heritage in European equities. The appointment marks a further milestone in GAM's transformation and ongoing commitment to investment excellence. Tom O'Hara, Investment Director, European Equities at GAM, commented: 'It's great to be joining GAM. This is a very exciting time in the company's turnaround, supported by a long-term focused majority owner and a strong, investment-led culture that traces its roots to Gilbert de Botton. On a personal level, my investing career started thanks to John Bennett - who spent 17 years at GAM managing European Equities and always spoke highly of the firm's investment ethos. So, it really feels like a natural fit for us to be here.' 'Our approach will remain consistent with our past. We are managing a concentrated, high-conviction portfolio of around 30 stocks, using our straightforward and repeatable framework, . This combines expected earnings growth, cash return and valuation change to assess whether a company's return potential exceeds that of the broader market.' A core, consistent and transparent investment process While the team brings a fresh perspective, they remain committed to delivering a core, flexible, style-agnostic strategy which builds on the legacies of both GAM and their own history as successful European equity investors. Their process is grounded in fundamental research and offers clear, data-driven insights for clients. , 'We want to be open-source. That means sharing our investment insights, process and return assumptions with clients transparently and consistently across all our communications.' A turning point for Europe The team also believes the macro backdrop is shifting decisively in Europe's favour. 'For decades, cheap valuations alone weren't enough to catalyse change in Europe. But that's no longer the case. Geopolitical realignment sparked, in part, by the return of Donald Trump who has done more for EU unity than any post-war president,' . 'We're seeing a more assertive Europe: a looser fiscal stance in Germany, more coherent messaging from EU leaders, and growing momentum for innovation, investment, and regulatory simplification.' 'Europe has a generational opportunity to redefine itself that demands cohesive action across industrial policy, energy security and tech sovereignty. These shifts will create a new generation of winners across the region. We believe this marks a key turning point for the European equity market.' Elmar Zumbuehl, Group CEO of GAM Investments, added 'We are delighted to welcome Tom, Jamie and David to GAM. Their fresh approach, tight teamwork and use of advanced technology to focus on what really matters fully embraces the transformational changes underway in active investing. Their arrival significantly strengthens our specialist active equity offering and with investor interest returning to Europe, we see this as a powerful step forward for GAM's specialist active equities platform and our clients.' Investors are encouraged to contact their local GAM relationship manager to learn more about the strategies or meet the team through upcoming events, webinars and roadshows. Editorial Information: Video: Introduction to European Equities at GAM – Tom O'Hara, David Barker and Jamie Ross. Team Bios: Tom O'Hara, Investment Director, is responsible for the management of European Equity funds at GAM, alongside Jamie Ross and David Barker. Before joining GAM Investments in May 2025, he spent 7 years managing European equity funds at Janus Henderson Investors. Prior to this, he spent 8 years as a sell side equity research analyst covering the metals and mining sector. He began his career in the treasury of Northern Rock plc. He has 19 years of financial industry experience and received his BA degree (Hons) in economics from Newcastle University. He is passionate about the role of emerging technologies in shaping active investing and was an early investor in Quartr, a Swedish fintech platform, where he continues to serve as a non-executive adviser. David Barker, Investment Manager, is responsible for the management of European Equity funds at GAM. Before joining GAM Investments in May 2025, he was a Research Analyst on the European Equities Team at Janus Henderson Investors, a position he had held since 2021. Prior to this, he was Research Analyst specialising in Aerospace & Defence and Industrials at Bank of America Merrill Lynch, where he started in 2017. David graduated with a BA degree in History from Somerville College, University of Oxford and has 9 years of financial industry experience. Jamie Ross, Investment Manager, is responsible for the management of European Equity funds at GAM. Before joining GAM Investments in May 2025, he was a Portfolio Manager on the European Equities Team at Janus Henderson Investors, a position he had held since 2016. Prior to this, he was a portfolio manager on the UK Equities Team, where he co-managed a UK equities pooled fund. He started his career with Henderson in 2007. Jamie graduated with a BA degree (Hons) in economics from Durham University. He holds the Chartered Financial Analyst designation and has 18 years of financial industry experience. For further information please contact: Colin Bennett | GAM Media Relations T +44 (0) 20 73 938 544 Visit us: us: X and LinkedIn About GAM GAM Investments is a highly scalable global investment platform with strong global distribution capabilities focusing on three core areas, Specialist Active Investing, Alternative Investing and Wealth Management, that is listed in Switzerland. It delivers distinctive and differentiated investment solutions across its Investment and Wealth Management businesses. Its purpose is to protect and enhance clients' financial future. It attracts and empowers brightest minds to provide investment leadership, innovation and a positive impact on society and the environment. Total assets under management were CHF 16.3 billion as of 31 December 2024. GAM Investments has global distribution with offices in 14 countries and is geographically diverse with clients in almost every continent. Headquartered in Zurich, GAM Investments was founded in 1983, and its registered office is at Hardstrasse 201 Zurich, 8037 Switzerland. For more information about GAM Investments, please visit Other Important Information This release contains or may contain statements that constitute forward-looking statements. Words such as 'anticipate', 'believe', 'expect', "estimate", "aim", 'project', 'forecast', "risk", 'likely', 'intend', 'outlook', 'should', 'could', "would", 'may', 'might', "will", "continue", "plan", "probability", "indicative", "seek", 'target', 'plan' and other similar expressions are intended to or may identify forward-looking statements. Any such statements in this release speak only as of the date hereof and are based on assumptions and contingencies subject to change without notice, as are statements about market and industry trends, projections, guidance, and estimates. Any forward-looking statements in this release are not indications, guarantees, assurances or predictions of future performance and involve known and unknown risks, uncertainties and other factors, many of which are beyond the control of the person making such statements, its affiliates and its and their directors, officers, employees, agents and advisors and may involve significant elements of subjective judgement and assumptions as to future events which may or may not be correct and may cause actual results to differ materially from those expressed or implied in any such statements. You are strongly cautioned not to place undue reliance on forward-looking statements and no person accepts or assumes any liability in connection therewith. This release is not a financial product or investment advice, a recommendation to acquire, exchange or dispose of securities or accounting, legal or tax advice. It has been prepared without taking into account the objectives, legal, financial or tax situation and needs of individuals. Before making an investment decision, individuals should consider the appropriateness of the information having regard to their own objectives, legal, financial and tax situation and needs and seek legal, tax and other advice as appropriate for their individual needs and jurisdiction. Attachments GAM Investments Strengthens European Equities Platform with Appointment of Leading Investment Team_En GAM European Equity Team PhotographSign in to access your portfolio
Globe and Mail
27-05-2025
- Business
- Globe and Mail
ETF Outlook: Europe's Equity Strength and the Trump Tariff Threat
The strong performance of European equities has been a dominant theme throughout the year thus far, as the MSCI Europe Total Return Index has significantly outperformed the MSCI USA Total Return Index. There is a growing belief that this outperformance will not be temporary but will continue throughout the year. A recent Bloomberg article noted that equity strategists believe that the asset class will continue upward. Political Proclamation or Posturing With the truce with China now in motion, President Trump has focused on the European Union. As recently as last Friday, May 23rd, President Trump threatened to place a tariff of 50% on European goods starting on June 1st. As reported on Sunday, May 25th, Ursula Von der Leyen, President of the European Commission, says the bloc needs until 9 July to agree a "good deal". Regarding Europe, the belief is that President Trump's recent threat is aimed at expediting negotiations. Given how the China tariff escalation scenario netted out, the possibility of 50% tariffs seems highly unlikely. According to Eurostat, in 2024, the United States was the largest partner for EU exports of goods (20.6%) and the second largest partner for EU imports of goods (13.7%). Among EU countries, the Netherlands was the largest importer of goods from the United States, and Germany was the largest exporter of goods to the United States. Though the Europe-U.S. trade relationship has gradually grown over the decade, Europe's economy is not entirely dependent on the U.S. As captured in a recent memo by MSCI, in looking at the revenue exposure of companies within the MSCI Europe Index and MSCI USA Index. The constituents of the MSCI Europe Index generated 24.5% of their revenues from the U.S., while approximately 40% of the revenues for the constituents of the MSCI USA Index came from international markets. This uneven revenue distribution might give Europe a more advantageous position, especially considering Europe's closer connections to rapidly expanding emerging markets. Investing in Europe ETFs For Canadian investors seeking to gain exposure to European equities, there are various ETFs that they can select from. The CI Europe Hedged Equity Index ETF (Tickers: EHE / EHE.B) seeks to track the price and yield performance of the WisdomTree Europe CAD-Hedged Equity Index, which reflects dividend paying companies domiciled in Europe, have at least $1 billion market capitalization, and derive at least 50% of their revenue in the latest fiscal year from countries outside of Europe. The iShares MSCI Europe IMI Index ETF (Tickers: XEU / XEH) seeks to replicate the performance of the MSCI Europe Investable Market Index, which reflects large, mid and small cap companies across developed market countries in Europe. The Vanguard FTSE Developed Europe All Cap Index ETF (Ticker: VE) provides a similar exposure, but seeks to track the FTSE Developed Europe All Cap Index. Finally, for investors with a pure dividend focus, the RBC Quant European Dividend Leaders ETF (Tickers: RPD / RPDH / RPD.U) provides investors with exposure to a portfolio of diversified, high-quality European equity securities that are expected to provide regular income. Utilizing a quantitative multi-factor approach to assess a company's financial strength, the fund is reflective of firms that are consistent growing dividend payers with an attractive yield. And it doesn't stop there—according to the CBOE ETF Market Canada screener, there are more ETFs offering broad Europe or Developed Europe exposure that investors can explore. Please note this article is for information purposes only and does not in any way constitute investment advice. It is essential that you seek advice from a registered financial professional prior to making any investment decision.
Yahoo
24-05-2025
- Business
- Yahoo
Global investors are in 'sell America' mode even with US market dominance intact, JPMorgan survey says
Surveyed international investors are betting on European equities to beat out US stocks, JPMorgan said. The "sell America" trade has picked up steam amid policy, tariffs, and deficit fears. "Sell America" sentiment is growing among international investors, even as Wall Street forecasters see US markets bound to push past the worst-case scenarios. Investors from 45 countries surveyed at the JPMorgan Global Markets Conference this month revealed a bullish lean toward Europe, with 36% anticipating European equities to be the best-performing asset in 2025. That's compared to 17% who are betting on US stocks to dominate. "There were mixed views on the outlook for the US economy, even if recession is no longer the base case, and investor sentiment was not as positive on growth as risk market trading suggests," a team of JPMorgan analysts wrote last week. The report, involving 700 investors from 45 countries, adds to other signs indicating that global investors have turned cautious on US markets after years of outperformance. While US equities have drawn heavy foreign investor flows as the market rallied in the last few years, high valuations, AI disruptions, and massive policy and data jitters have shaken faith in "US exceptionalism." Meanwhile, new tailwinds are emerging for the European market, and investors have flocked to the region's stock market. The Stoxx Europe 600 is up 7% for the year, while the S&P 500 is down about 1%. However, though the stark difference in performance between the two markets may boost pro-European arguments, several Wall Street forecasters have cautioned against dumping US assets. Morgan Stanley recently projected that American dominance will remain intact through at least 2026, as near-term volatility gives way to improved earnings sentiment, continued AI gains, and accommodating policy boosts. In its view, slowing growth will not trigger a recession. Goldman Sachs, meanwhile, suggested that US mega-caps will outperform again this year — the so-called Magnificent Seven stocks have been the S&P 500's main growth engine since 2023, and are trading at discounted valuations that investors will lean into, the bank said. For now, uncertain will remain until the market gets more clarity on everything from interest rates, recession odds, trade deals, and geopolitical developments. JPMorgan offered some takeaways from the conference on key issues: Recession: Odds of a US downturn now stand at 40%, but GDP damage is already done. Conference speakers cited that US tariffs will dent business investment and consumption. JPMorgan expects the 10-year Treasury yield to end 2025 at 4.35%. Trade negotiations mean more uncertainty: Easing tensions with China may have uplifted US investors' spirits, but a deal with the European Union looks contentious, JPMorgan said. Risk of retaliation is high if negotiations don't conclude favorably. That risk was amplified on Friday when Trump posted on Truth Social that he was recommending a 50% tariff on the EU starting June 1. Expect a longer bond sell-off: Foreign dumping of US debt should continue as inflation, attacks against central bank independence, and policy turmoil erode the Treasury market's safe haven appeal. As sovereign wealth funds and reserve managers rethink Treasury holdings, gold stands to benefit, JPMorgan said. "A potential shift of just 0.5% of foreign US assets to gold could yield 18% annual returns, taking gold prices toward $6,000 by early 2029." Read the original article on Business Insider
