Published research is broadly, if cautiously, constructive on European equities right now.
Researchers argue a technical breakout in Euro area indices, improved near-term equity conditions, and a positive earnings backdrop justify holding European exposure as a core position. A separate strand of analysis is outright bullish on European banks, arguing the multi-year shift from negative to positive interest rates has driven the sector to outperform US peers over the last four to five years — with specific buy calls on individual lenders within that thesis.
On Germany, one camp of analysts sees mild improvement in fundamentals: manufacturing PMIs are firming, Ifo expectations rose in July, and anticipated fiscal support should provide tailwinds in coming quarters. They stop short of calling for spectacular gains, flagging energy costs, Rhine water levels, and weak external demand as lingering risks.
The main bearish note: a contrarian technical read on SAP, where a sharp rally into major resistance and a bearish candle pattern suggest scope for near-term consolidation.