Bloomberg: EU stocks rise faster than US amid trade fears

European stocks are outperforming US markets as transatlantic trade tensions grow, boosting the region's appeal to investors. The DAX 40 has surged 13% year-to-date, outpacing the volatile S&P 500 amid tariff concerns. This European resilience stems from massive industrial sector investments, Bloomberg reports.

Germany's plans to increase spending on defense and infrastructure are drawing investor interest. According to EPFR Global, over $21 billion has entered European stock funds this year. Bank of America reports money managers now favor EU for the first time since 2020.

US markets faced pressure amid rising inflation concerns and recession fears. Goldman Sachs now estimates a 35% probability of a US recession, while JPMorgan places the risk even higher at 40%. The announcement of new tariffs by Donald Trump has heightened global trade tensions. Bloomberg reports the United States may introduce additional trade measures on April 2, potentially triggering EU countermeasures.