From Investing.com: 2024-05-13 06:17:08

Goldman Sachs strategists have noted that European markets are hitting new all-time highs, with the FTSE and DAX up 10% and 14% year-to-date, outperforming the S&P 500 and NASDAQ. The Euro area economy has resumed growth, with real GDP increasing by 0.3% in Q1 and composite PMI rising to 51.7 in April.

The current earnings season has been positive, with first-quarter earnings surpassing expectations and sales meeting projections. Margin and large cap performance has exceeded expectations, leading to an upgrade in EPS growth forecast to 6% for 2024. Specific factors like ‘Growth’ and ‘Large’ have outperformed, with a reversal in the Growth vs. Value trade.

Banks and commodity producers have become the main drivers of the market rally in Europe, offering diversification from US tech stocks. Although Defensives and Small Caps have stopped underperforming, they have not yet begun to outperform. Cautious investor positioning persists in Europe due to negative fund flows, but recent weeks have shown some inflows.



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