From Investing.com: 2025-01-29 04:22:00

In January 2025, European equities saw the largest monthly capital inflows in 25 years, with a 6% growth in 2024 compared to 24% in the US. The euro area’s economy grew by just 0.9% in Q3, while the US grew by 2.7%. The outlook suggests a growing monetary policy divergence between the US and the eurozone, with the ECB expected to cut rates by up to one percentage point this year. European banks are seeing high interest yields and potential for growth, despite lagging behind US counterparts. The luxury goods sector is also experiencing growth, with companies like Richemont and Brunello Cucinelli reporting strong sales.

However, challenges remain for European companies such as ASML and Ericsson, who face potential export bans and tariffs. Novo Nordisk also faces uncertainty with mixed results for obesity drugs. The World Economic Forum in Davos discussed Trump’s policies, particularly in tariffs and energy, posing risks for Europe. Geopolitical pressures, a strong dollar, and energy regulation remain key factors for European investors in 2025.



Read more at Investing.com: With Inflation, Slowdown, Trade Wars Risks, Why Are Investors Returning to Europe?