Over the past two years, European equity markets have lagged behind the US. However, recent developments indicate a promising recovery. Since January, European stocks have outperformed both the US and other key regions, showing resilience despite concerns over US tariffs and ongoing geopolitical tensions stemming from the Russia-Ukraine conflict.

While Europe has largely avoided the widespread US tariffs imposed on Canada, Mexico, and China, it is important to note that the region may not remain immune to future tariff impacts. Nevertheless, any potential impact is expected to be limited compared to other regions, as Europe's diversified economy and strong domestic demand should provide a buffer against external shocks.

Even though growth in 2025 is expected to remain modest, the medium-term outlook for Europe is promising. Structural changes and investments anticipated in the coming years are likely to drive economic activity across the continent.

chart Price performance of equity indices, US and Europe
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Unless otherwise stated, all information contained in this document is from Amundi Asset Management S.A.S. and is as of 21 March 2025. Diversification does not guarantee a profit or protect against a loss. The views expressed regarding market and economic trends are those of the author and not necessarily Amundi Asset Management S.A.S. and are subject to change at any time based on market and other conditions, and there can be no assurance that countries, markets or sectors will perform as expected. These views should not be relied upon as investment advice, a security recommendation, or as an indication of trading for any Amundi product. This material does not constitute an offer or solicitation to buy or sell any security, fund units or services. Investment involves risks, including market, political, liquidity and currency risks. Past performance is not a guarantee or indicative of future results. 

Date of first use: 21 March 2025
Doc ID: 4342011

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