European equities experienced a strong second quarter, with the rally showing signs of broadening beyond AI-focused sectors into industrials and consumer discretionary. Falling inflation figures provide the ECB room for a more measured tightening policy.
Key Takeaways
- 1.European equities are broadening in rally, with a shift from pure AI-led leaders to structural growth and cyclical recovery areas like industrials and consumer discretionary.
- 2.Eurozone inflation cooling to 2.8% in June reduces pressure for aggressive ECB rate hikes, with policy easing towards a more gradual path.
Table of Contents
- Thought of the day
- What to watch: 2 July
- Caught our attention
- Market update
- Global asset class preferences definitions
- Appendix
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Authors
Mark Haefele
Securities
MSCI Europe IndexMETA
Themes
Artificial IntelligenceInflation
Regions
EuropeNorth AmericaGermanyChina