Europe's Stock Market Edge May Fade

European stocks outperform US markets this week, but experts predict this trend may not last. The pan-European Stoxx six hundred index rose by 1.2% due to strong performances from Spanish and Italian banks and the end of the US government shutdown. However, the S&P five hundred index in the US dropped by 0.7% due to concerns about high valuations in the tech sector, increased spending on AI, and uncertainty over the Federal Reserves interest rate decisions. Analysts at Capital Economics suggest that European stocks may fall behind US counterparts by the end of 2026, as the weaker dollar trend may not continue and industrial stocks may not outperform due to Europes bleak economic growth outlook.The Daily News Now! — Every city. Every story. AI-powered. Hosted on Acast. See acast.com/privacy for more information.