European equities are drawing a broadly constructive tone in this week's published research, spanning both cyclical and structural angles.
Researchers have upgraded their outlook on Eurozone and Swedish equities into 2027, pointing to Germany surprising to the upside, firmer regional activity, resilient Swedish exports, a rebound in household spending, and supportive fiscal policy.
A separate strand of recent analysis makes a structural case for European defence, aerospace, and space. The argument: a multi-decade rearmament cycle tied to the war in Ukraine, sharply higher defence budgets, and EU funding vehicles like Readiness 2030 and the SAFE loan facility. Prime contractor order books are up sharply, with average revenues reportedly 57% higher than in 2021. Aerospace analysts flag a 16,000-aircraft backlog — roughly 12 years of production — where supply, not demand, is the constraint. Space names benefit from EU strategic autonomy programmes including Galileo, Copernicus, and IRIS².
On tactical calls, some recently-published views see modest DAX gains at the open, a conditional bullish setup on Südzucker if a key resistance level breaks, and near-term support for European IT on softer oil and yields.