European equities are catching a constructive tone in today's published research, though views split by sector and timeframe.
The bull case, laid out across several recent research notes, rests on strong earnings momentum, a politically driven investment boom in energy security and infrastructure, high household savings, and valuations roughly a third cheaper than the US. One strand of analysis pegs European earnings growth expectations near 25%. European banks are a favored expression: loan growth, fees, wealth management, and AI-driven efficiencies are argued to support profits beyond just interest rates.
On the UK, researchers read the latest budget as mildly positive for banks (the temporary surcharge was less harsh than feared) and SSE (helped by more fixed-price contracts for legacy renewables), but negative for housebuilders after an underwhelming first-home scheme and no relief on gilt yields.
At the index level, one short-term call sees the DAX stabilising above 25,700. A contrarian relative-value view favors US tech over Europe and the UK — a relative, not absolute, bet against the region.