From Morningstar: 2025-06-04 04:43:00

The Morningstar Europe Index saw a 4.9% increase in May, led by tech stocks, with a nearly 10% gain year-to-date. Large-cap growth stocks like ASML, Rheinmetall, and Siemens Energy performed well, while large-blend stocks like Sanofi and LVMH lagged behind.

The European banking sector outperformed, with large-value stocks rising 5.8% in euros. Banco Santander, HSBC, and BNP Paribas were top performers. The financial services sector gained 6.40%, while consumer defensive stocks only saw a 1.73% increase.

Small-value stocks remain the most undervalued segment, with large-growth stocks overvalued. Seven out of nine Morningstar Style Box segments are undervalued, with a price/fair value below 1 indicating undervaluation.

In May, fair value estimates for European stocks saw significant changes. BAE Systems, NatWest Group, Intesa Sanpaolo, and Generali had the largest increases in fair value, while BASF, Novo Nordisk, and Mercedes-Benz Group had the biggest downward revisions. 1. The stock market experienced a significant drop today, with the S&P 500 and Dow Jones both falling by over 2%. This decrease was attributed to concerns over rising inflation and interest rates, causing investors to sell off their stocks.

2. A new study found that 70% of Americans are feeling the financial strain of the pandemic, with many struggling to pay bills and save for the future. The survey also revealed that 40% of respondents have had to dip into their savings to cover expenses.

3. In international news, tensions between Russia and Ukraine are on the rise as Russian troops continue to mass near the Ukrainian border. The US and NATO have expressed concern over the situation, calling for a peaceful resolution to the conflict.

4. A recent report showed that greenhouse gas emissions reached a record high in 2021, despite efforts to combat climate change. The data revealed that carbon dioxide levels rose by 2.5% last year, with China and the US being the largest contributors to the increase.

5. Tech giant Apple announced a new initiative to invest $430 billion in the US over the next five years, creating 20,000 new jobs. The company plans to focus on expanding its manufacturing and research capabilities, with a goal of becoming carbon neutral by 2030.



Read more at Morningstar: European Tech and Banking Stocks Drive Large-Cap…