Europe-focused funds shed more than $1.5 billion over the past week alone, marking a 5th straight week of sustained withdrawals. With the STOXX Europe 600 trading at around 13.5 times earnings (forward), and failing to attract buyers despite a historical discount to US markets, investors are reassessing the region's equity risk premium.
"Europe doesn't realize exactly how dangerous it is to just rely on the American infrastructure," Bouygues CEO Olivier Roussat told CNBC on Thursday. Elon Musk's Starlink currently dominates the global satellite internet service, and its parent company SpaceX is planning to list on Nasdaq in what could be one of the biggest IPO ever.
Contrary to what some Trump officials believe, Europe remains critical to our defense and, indeed, to securing the Free World. Therefore, the sudden, unexpected cancellation of a U.S. Army armor brigade's deployment in Poland raises a deeply disturbing question: Is Washington retreating from Europe?
The European Union has struck a provisional agreement to implement a trade pact with the U.S. It includes a safeguard mechanism that would let Brussels suspend tariff reductions in the event that U.S. imports harm European industry.
Demand for electric vehicles in Europe has surged as high fuel prices linked to the Iran war propel sales of new and second-hand EVs, data exclusively shared with Reuters shows, providing a much-needed boost to the auto industry.
The move likely reflects an increase in the cost of imported energy as the conflict in the Middle East disrupted supplies.
European shares moved slightly higher on Tuesday after investors reacted positively to signs of easing geopolitical tensions between the United States and Iran. Markets also assessed corporate developments, including Standard Chartered's large-scale restructuring plans tied to artificial intelligence adoption.
European stocks are expected to open in mixed territory on Tuesday as traders assess the geopolitical landscape.
European shares moved lower on Monday as rising oil prices and continued bond sell-offs heightened inflation concerns, while the absence of any breakthrough between the United States and Iran kept investors cautious. The pan-European STOXX 600 index slipped 0.7% to 602.52 points as of 0703 GMT, extending losses after ending the previous week in negative territory.
European blue-chip companies are on course to deliver their strongest earnings growth since the fourth quarter of 2022, according to the latest LSEG I/B/E/S data released on Thursday. However, revenues are still expected to decline despite the strong profit performance.
Output rose 0.2% on month, though the war in the Middle East is expected to increasingly weigh on manufacturers as energy costs and supply disruptions mount.
European shares fell sharply on Tuesday as fading hopes of a peace deal between the United States and Iran pushed oil prices higher and weighed on investor sentiment across the region. Markets remained under pressure after US President Donald Trump said the ceasefire with Iran was “on life support.