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This month, European stocks are out of other major global equity markets this month. The fear of wiping out the US tariffs has sink, and investors are fled from the shakout of Wall Street Technology.
The StoxX EUROPE 600 index has risen to a record high on Friday, increased 6.3 % in January, and has left the highest monthly performance since November 2023. US S & P 500 indexes have increased by about 3.9 %, and Japan’s TOPIX has increased by 0.1. Persaent for the same period.
London’s FTSE 100 indexes also ended on a record high on Friday, raised the earnings of one year to 6.1 %, and since November 2022, the market repelled after the unfortunate budget 2 of Prime Minister Listress. , Marked the best monthly performance. A few months ago.
This profit caused a new hope for sustainable revival in the regional stock market. German DAX has risen nearly 5 minutes last year, as if the whole European has been much behind the United States in the past decade, but sometimes strongly performed.
“You don’t have to do so much before everyone gets excited after a long -standing performance.. Sociétégénérale strategist Roland Kaloyan said:
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Investors were accumulated in US stocks last year with excitement on the growth of artificial intelligence.
At the same time, US President Donald Trump’s tariff threats became heavier in Europe. It sends about one -fifth exports to the United States every year, and the political crisis of the country, such as France, reduced investors’ appetite for bonds and shares.
However, in January, the United States Bank had the largest rotation to the Euro -zone stock in about 10 years from US stocks.
Analysts said this week’s global high -tech sale was the only Chinese emerging company that was caused by DeepSeek’s advances in artificial intelligence.
After AI Wobbles, “Investors are heading.” Jeffrey’s economist Mohit Kumar states that the area has little exposure to technical stocks. ”
According to Sociétégégégénérale, only 8 % of Stoxx Europe 600 is composed of IT sector companies compared to 30 % of S & P 500. If stocks such as Amazon and Alphabet (classified as consumers and telecommunications companies by French banks) are included, US index high -tex share will rise to 45 %.
Furthermore, Trump’s softer attitude toward tariffs -he threatens 25 % duty for products from Mexico and Canada, but he couldn’t hit the Euro area due to taxation. Masu.
“I have expectations for Europe,” said Shalon Bell, senior equity strategist of Goldman Sachs. “This has changed.”
According to SOCGEN data, European stocks have been approaching the United States since at least the late 1980s after the long -standing Wall Street. Analysts, especially the British market, have benefited from low reputation.
“I’m very surprised at the growing interest in British shares, probably because the expectations of growth are considerably higher than other areas in Europe,” Bell said.
“And it’s obviously cheap. You can also consider it as a hedge for technology. For diversification.”
The powerful performance of European stocks is struggling to recover from the Energy and Food Prices Suddenly Rising of the European Areas in Russia’s Ukrainian invasion of Ukraine It continues to grow strongly. This week’s data indicated that the euro economy was unexpectedly stagnant in the fourth quarter.
However, analysts said that the European Central Bank would further reduce interest rates could support investors. In the United States, the market believes that inflation pressure will be forced to maintain a longer price by the US Central Bank.
“If the market begins to go crazy about US inflation, it will be more positive for European stocks,” said Sogen’s Kaloyan.
Additional reports by Ray Douglas
