European Stocks Surge: Outperforming Wall Street
European stocks have shown impressive performance against Wall Street in early 2025, with investors attracted by valuation gaps and potential fiscal and geopolitical shifts. Despite structural challenges, European equities are experiencing significant inflows, reflecting optimism about possible economic improvements and strong sector growth.

European stocks have achieved their strongest performance against Wall Street in a decade during the first six weeks of 2025. However, despite investor optimism, long-standing structural challenges could undermine this rally.
Investors are capitalizing on valuation gaps and potential catalysts such as Germany's fiscal policy shift, easing Ukrainian tensions, and reduced U.S. tariffs. Fund inflows into European equities have reached a 25-year high, driving major benchmarks to record levels and surpassing U.S. counterparts.
Analysts anticipate further gains as earnings growth accelerates, though Europe's deep-rooted structural challenges, including energy dependence and fragmented markets, remain significant hurdles.
(With inputs from agencies.)