In this financial reporting season, Europe is catching up with the US, and the gap in profit growth expectations has narrowed, for the first time in more than three years. Analysts expect that the profit of the MSCS European Index constituent stocks surged 23% year on year in the third quarter, slightly lower than the expected increase of 24% for S&P 500 constituent stocks. The last time European profits surpassed the US was in the first quarter of 2023. The economic resilience of the two places supports market optimism; at a time when US AI-related concerns are disturbing US stocks, this change is a positive sign for European stock investors. After losing the S&P 500 for two consecutive quarters, the European Stoxx 600 index is expected to overtake in October. Violeta Todorova, senior research analyst at Leverage Shares, said that Europe's relative allocation value is increasing. The European stock market is characterized by moderate valuations and improved profit momentum, and at the same time, it is not excessively concentrated on a few very large technology companies.

In this financial reporting season, Europe is catching up with the US, and the gap in profit growth expectations has narrowed, for the first time in more than three years. Analysts expect that the profit of the MSCS European Index constituent stocks surged 23% year on year in the third quarter, slightly lower than the expected increase of 24% for S&P 500 constituent stocks. The last time European profits surpassed the US was in the first quarter of 2023. The economic resilience of the two places supports market optimism; at a time when US AI-related concerns are disturbing US stocks, this change is a positive sign for European stock investors. After losing the S&P 500 for two consecutive quarters, the European Stoxx 600 index is expected to overtake in October. Violeta Todorova, senior research analyst at Leverage Shares, said that Europe's relative allocation value is increasing. The European stock market is characterized by moderate valuations and improved profit momentum, and at the same time, it is not excessively concentrated on a few very large technology companies.