European equities had a genuinely constructive week, with Q2 GDP surprises across France, Germany, Spain and Italy reframing the region as a domestically-driven growth story rather than a laggard.
Several strands of research pointed to structural tailwinds: German fiscal stimulus, AI adoption, electrification, aerospace and defense spending. French, Italian and Spanish indices were flagged as cyclical beneficiaries, and one view argued Eurozone equities are climbing a "wall of worry" where sluggish growth and tariff fears are already priced in.
Sector calls skewed positive on Euro-area and Swiss financials (higher yields lifting margins, AI-driven cost savings), Swiss healthcare, and European defense names amid rearmament. UK equities drew attention for valuation and 75% overseas revenue exposure, with house builders tied to new government investment plans — though UK utilities were seen as regulatory-risk laden.
Single-name work highlighted SAP's post-earnings leadership in the DAX, a bullish case for Cellnex on depressed EBITDA multiples, and pressure on ASML after a Chinese competitor began mass-producing DUV lithography tools.