Europe Weekly Kickstart Broadening Beneath the Surface

Equity market returns are broadening away from US tech dominance toward European value and physical-infrastructure-linked sectors. Despite historically high global valuations, European equities are outperforming YTD, supported by robust profit growth and diversifying flows.

Key Takeaways

• 1.Equity market returns are broadening geographically and by sector, with the US underperforming other major markets in early 2026.
• 2.Global equity valuations are historically elevated, driven largely by multiple expansion rather than just earnings.
• 3.AI technology is driving a 'reconnection' between the virtual and physical worlds, increasing capex in energy and data centers.

Table of Contents

• Broadening Beneath the Surface
• Earnings surprises — Equal-weighted
• Earnings surprises — Market cap-weighted
• Sales surprises — Equal-weighted
• Sales surprises — Market cap-weighted
• Snapshot of Global Performance Across Assets - Total Returns (€)
• Global Strategy Views: Indices and Asset Classes
• Earnings expectations and revisions
• STOXX Europe 600 Supersectors
• Style performance
• Thematic Baskets – Price performance
• Sub-Sector Performance
• Thematic baskets
• Thematic Basket Valuation
• Europe sector valuation
• European Indices Valuation
• Long-Term Valuation – Europe
• Style Performance
• Flows from Global investors into European funds
• Volatility, Skew, Dispersion and Correlations
• Europe Indices Sales Exposure
• European Indices Sector Weights
• Sector Correlations
• Economics

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