European stocks outperformed US peers in first half of 2025 — Bloomberg

As reported by Bloomberg, European stocks outperformed their US counterparts in dollar terms during the first half of 2025. This signals a recovery in the region’s equity markets after more than a decade of stagnation.

The rally hasn’t been limited to stocks: the euro has already gained 13% against the dollar in just the past six months. JPMorgan forecasts the currency pair to reach 1.20 by year-end, while some analysts, like Mark Nash of Jupiter Asset Management, expect it to climb to 1.30–1.40 next year.

Meanwhile, German bunds have been outperforming their US counterparts since April, even as Berlin plans to issue more debt. Emerging European markets are also posting solid gains, according to Bloomberg.

Investors are now shifting capital from US assets to Europe amid growing concerns. Market participants worry that Trump administration policies could weigh on corporate profits, stoke inflation, and expand America's budget deficit. Meanwhile, Europe is benefiting from increased government spending and looser monetary policy, the news agency notes. The interest rate gap between the European Central Bank and the Federal Reserve now exceeds 2%.