European Stocks Are Beating the S&P 500. Why It Could Continue.

European Stocks Are Beating the S&P 500. Why It Could Continue.

European equities are connected a uncommon streak of outperformance against their U.S. counterparts. It could go the caller normal, according to Barclays.

The Stoxx Europe 600 Index was up 0.1% astatine 554.94 successful greeting trading connected Wednesday, adding to gains of much than 9% this twelvemonth truthful far. That compares with a 4.5% autumn successful the S&P 500. Barclays analysts person raised their year-end people terms for the Stoxx Europe 600 Index to 580 from 545.

“After a beardown commencement to the twelvemonth led by accelerated wealth buying, EU valuations person gone backmost to just value, successful our view. Real wealth flows person conscionable started to determination successful too, but weaker growth/high ostentation successful the US driven by Trump 2.0 argumentation has revived stagflation worries,” Barclays expert Emmanuel Cau wrote successful a probe note.