© a.s.r. 2025
10 March 2025 | 1 min. readingtime
European stocks are catching up with U.S. stocks. In February, it was the best performing asset class with a 3.6% return, while U.S. stocks were the worst performing category with a -1.7% return, measured in euros. This brings European equities to a 10% return for the first two months of this year, compared with just 1.8% for U.S. equities.
Despite the fact that European stocks have been cheap relative to U.S. stocks (in terms of price-to-earnings ratios) for some time, the turn is still remarkable. No surprisingly good macro figures have come out of the Eurozone. For the US, however, it can be argued that the import tariffs that President Trump wants to impose (and has already partially imposed) are also going to hurt the US economy itself. It is possible that markets are anticipating that expectations for the Eurozone economy are “bottoming out,” while those for the US have reached a “peak.”
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