EUROPEAN EQUITIES
Is it a good timing to invest in European Equities?
What consensus may underestimate?
Extremely low expectations in Europe vs high expectations in the United States • Valuation spread vs US at all time high • BPAe growth 2025 half of the US
Trump trades? •
End of Ukraine war ➔ good news for Europe • Lower/limited tariffs ➔ would be positive for Europe
Time for fiscal stimulus package? • Time for fiscal plan in Germany? •
Europe would be the main indirect beneficiary of a fiscal plan in China
French political uncertainty priced in? • Spread vs Germany already price a BBB rating • Non censorship of the new government could regain confidence
A more accommodating monetary policy in Europe • Lower inflation in Europe already reflected in rate level • More cut to come from the ECB than from the Fed
Public
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Source: Rothschild & Co Asset Management – 2024
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