European equities are sitting at record highs, and the published research consensus this week is firmly bullish — both tactically and on a multi-year structural view.
Researchers argue the rally reflects easing geopolitical tensions, a less hawkish central bank tone, and a broad risk-on mood. One recent analytical framework labels the current regime a "low volatility bull": the Euro Stoxx 50 is printing record closes, volatility stress is absent, and options positioning has shifted decisively bullish. A separate constructive take on the Stoxx 600 cites diplomatic progress in the Middle East and improving earnings visibility, while flagging Europe's energy sensitivity as a relative drag versus the US and Asia.
Beneath the index calls, two structural themes dominate published research. One camp of analysts is structurally bullish on European defence — Rheinmetall in particular, citing a roughly EUR 73 billion backlog and a multi-year NATO spending cycle. A separate thread highlights demographic-driven healthcare winners: Nestlé, Haleon, Reckitt, AstraZeneca and Roche, with AstraZeneca singled out because around 80% of sales tie to age-related conditions.