European equities ended the week with a cautiously constructive tilt, as researchers argued the region's earnings story and fiscal supports still outweigh political and rate risks.
A broad thread of analysis pointed to resilient earnings — roughly 10% growth ex-energy — plus a structural investment cycle in energy security, infrastructure and defence, with Germany's fiscal push and a high eurozone savings rate flagged as pent-up firepower. Several commentaries argued the sovereign-debt discount on European stocks looks excessive given the earnings outlook.
Banks remained a favoured pocket, with loan growth, fee income and wealth management cited as drivers beyond rates; the UK's bank levy came in milder than feared, prompting a relief rally. UK equities drew upgrades after the budget cleared a cloud of uncertainty, though housebuilders were seen as underwhelmed by the new support scheme.
Stock-specific calls leaned positive on ASML, Adidas, Munich Re, Merck KGaA and TotalEnergies, while Diageo was exited on structural spirits headwinds. One contrarian scenario warned a surprise ECB hike could tip fragile sentiment into risk-off.