Europe shares are on their way to surpassing its US peer through a record difference during 2025

Some strategic experts at Wall Street bet that European stocks will achieve their best performance compared to US stocks for less than two decades, in light of the improvement in the prospects for the economy in the region. The ‘Stoxus European 600’ index is expected to end at about 554 points this year, according to the average expectations of 20 strategic experts included in a “Bloomberg” survey, indicating a rise of about 1% over the closing level last Friday. JP Morgan Cess & Co set one of the highest targets in the survey at 580 points, while City Group expects 4% to the index to 570 points, with the tone of pessimism between analysts over the decline in corporate profits. On the other hand, the banks expect the standard index of US stocks during the rest of the year. Stox 600 was preceded by the “S&P 500”. The gap between the expectations of ‘JP Morgan’ for the indicators of the European and America indicates that the Stoxx 600 will exceed the ‘Standard and Poor’s 500’ with 25 degrees Celsius during the year 2025, which is the largest registered percentage ever, while the city estimates will be the best since 2005. Sectors related to the economic cycle subjected to greater pressure. ‘These expectations indicate a major shift compared to the beginning of this year, when strategic experts expected European shares to much of their US counterparts. However, the standard European index recorded an increase in historical financial reforms in Germany and strong profits attracted by investors in search of alternatives to US assets affected by the trade war. In a poll conducted by Bank of America a week ago, the net 35% of global fund managers chose to increase their European equity awards, while net exposure to US equities dropped to the lowest level in two years. The companies listed within the MSCI Eurob index rose 5.3% in the gains of the first quarter, which exceeded the expected 1.5% decline, according to data collected by “Bloomberg Intelligence”. The City Group index has also shown that the number of analysts who have reduced their estimates of European stocks has fallen in recent weeks. US markets in the United States are the general expectation of the markets greater. A separate survey conducted by “Bloomberg” showed that experts expect the Standard & Poor’s 500 index to end the year at an average level of 6001 points, ie without changing, is the closure of last Friday. Nevertheless, the increase in “Stoxx 600” has caused some concerns about the judgments by 8.3% since the beginning of this year. According to Bloomberg data, the index is currently trading at a profitable multiple of about 14.6 times, higher than the historic average of 13.5 times in 20 years, but it is still lower than the double “Standard & Poor’s 500”, which is almost 22 times. ‘Goldman Sachs’ strategic expert said she expects investors to assign their investments for the European region, given the relative decline in assessments and the high concentration of investments in the US market. She added: “We also note that inflation is more likely to fall in Europe this year, and there is a close relationship between low inflation and the high average judgments.” The Bloomberg poll showed that only 6 institutions ‘Bank of America’, ‘DEKA Bank’, Inkg, Pan -Wall Liberum, ‘Socites are Genereal’, ‘TFS’ derivatives), expect the “Stoxx 600” index to decrease by more than 2% compared to Friday. Customs, “Roland Calwyan”, a strategic expert at “Societe Generale”, said he should see a stronger improvement in profits, in addition to the further decrease in the risks associated with customs duties before he had to bet at the peak of the Stoxx 600 index. The general index is expected to end at the level of 530 points, a decline of 3.5%. Kalayan added: “The state of uncertainty surrounding customs duties is making expectations more, as many companies hesitate to provide clear guidelines, suggesting that the complete impact of these customs duties may not yet appear on profit expectations.” As for UPS Group, strategic expert Jerry Fowler said the judgments as expected amid expectations of stronger economic growth over the next two years. He concluded: “In order to achieve more profits, a period of uncertainty associated with policy changes must be exceeded, which is likely to keep the arrow profit growth in zero or slightly less during the current year.”