European stocks are currently undergoing a remarkable comeback. This opens up exciting opportunities for investors and private investors, particularly through the use of ETFs.
Reasons for the Positive Development
- Stimulating Economic Measures in Germany: The shift from austerity measures and the debt brake towards increased investments in infrastructure and defense is expected to boost GDP and profit growth. These measures particularly benefit the sectors of industry, raw materials, and infrastructure, which are strongly represented in European stock indices.
- Structural Reforms and Rising Corporate Confidence: Europe is showing signs of a sustainable recovery after years of weak growth. Companies are again optimistic about investments, which is expected to lead to accelerated profit growth starting in 2026/2027.
- Attractive Valuations: European stocks are moderately valued compared to US stocks, roughly 30% below the MSCI USA, offering further growth potential.
- Strong National Markets with International Orientation: The DAX benefits from heavyweights like SAP, Siemens, and Allianz, with a significant portion of DAX companies’ revenue generated outside the Eurozone. The FTSE MIB Index in Italy is also showing momentum due to its representation of banks and energy companies.
For investors, European ETFs offer a diversified access to growth-oriented sectors. The combination of government spending programs and structural reforms promises long-term returns.
In summary, the comeback of European stocks signals a longer-term market recovery. Investing in suitable ETFs may now be particularly rewarding.