From Morningstar: 2024-06-05 06:04:00

Around 450 million European voters will renew the EU parliament from 6-9 June, sparking investor interest. The rise of the right, with parties like EPP gaining seats, will polarize the European Parliament. Themes like less green, less EU integration, and less immigration signal potential policy shifts. The EU defense industry could benefit from closer collaboration among member states.

European equities are on the upswing amidst political changes. The Morningstar Europe Index has gained 10.7% in 2024. Despite evolving political landscape, positive signs include recovering consumption and fading energy shock. However, growth stocks may be overvalued, with potential impact from interest rate fluctuations. Strong fiscal support could benefit sectors like defense, healthcare, telecom, and utilities.



Read more at Morningstar: Why Investors Should Pay Attention to the European…