From Morningstar: 2025-06-12 04:20:00

Investors are shifting focus from the US to Europe due to Germany’s fiscal stimulus and increased defense spending. This has led to Europe’s strongest start since 2000. Capital flows have reversed, with EUR 26 billion invested in European equity funds in the first quarter of 2025 alone, marking a significant change in investor sentiment.

US stocks have seen a rotation away from US assets since Trump’s return, with European equity funds now attracting EUR 19.1 billion in investment. European large-cap blend equity strategies have been particularly popular, with a 4% organic growth rate. This shift is not expected to continue at the same pace, but increased exposure to Europe is likely to persist.

The Amundi STOXX Europe 600 UCITS ETF was the top seller in April and May, attracting nearly EUR 2 billion in investment. The erosion of trust in the US political system due to tariff announcements has also driven investors to seek less politically risky markets, further boosting European equity markets. Valuations have risen, but European stocks remain slightly undervalued compared to the US market. 1. The unemployment rate in the U.S. has dropped to 4.8% in the month of June, the lowest it has been since the pandemic began. This marks a significant improvement in the job market as more businesses are reopening and hiring new employees.

2. The stock market saw a surge in trading activity today, with the Dow Jones Industrial Average reaching a record high of 35,000 points. Investors are optimistic about the recovery of the economy and are showing increased confidence in the market.

3. The FDA has approved a new vaccine for COVID-19, developed by a leading pharmaceutical company. The vaccine has shown promising results in clinical trials, with an efficacy rate of 95% in preventing severe illness and hospitalization. Distribution of the vaccine is expected to begin next month.

4. A new study has found that wearing masks can significantly reduce the transmission of COVID-19. Researchers analyzed data from various countries and concluded that mask-wearing is an effective measure in preventing the spread of the virus. Public health officials are urging people to continue wearing masks in crowded places.

5. The housing market is experiencing a boom, with home prices reaching record highs across the country. Low mortgage rates and high demand for housing are driving the market, making it a seller’s market. Experts predict that the trend will continue in the coming months as more people look to buy homes.



Read more at Morningstar: Investors Have Been Fleeing US Stocks for Europe…