Investors are pouring money into European stocks, causing the largest capital inflow in the last 10 years. About this write Bloomberg.
In the four weeks leading up to March 5, regional funds raised almost $12 billion, a record high since August 2015.
The main reasons for this interest were the expectations of a significant increase in defense and infrastructure spending.
European leaders, including future German Chancellor Friedrich Merz, have announced their intention to invest hundreds of billions of euros in these areas amid declining US support for Ukraine.
Experts note that the promise of European rearmament “at any cost” implies a fiscal surplus in the eurozone, while federal spending cuts in the US hint at an era of fiscal austerity.
Since the beginning of the year, the pan-European Stoxx 600 index has grown by 8,5%, which was the best start to the year since 2015. At the same time, the American S&P 500 has decreased by 2,4%, and the Nasdaq 100 is on the verge of a technical correction.
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