Europe is quietly moving up the preference list in published research this week.
Several recently-published views have turned more constructive on Continental Europe, with one camp of analysts upgrading the region to overweight and another naming the Eurozone a preferred area to be invested. The reasoning: Europe is less exposed to the AI trade dominating US markets and benefits more directly from falling oil prices, especially if Middle East tensions continue to ease. Researchers also argue Eurozone earnings growth could match the US by 2027 — but at cheaper valuations — making it a natural diversifier for tech-heavy portfolios.
On individual names, technical research flags Vonovia as testing key resistance after rebounding from a multi-year low, with a breakout potentially confirming a short-term upswing. The DAX, after rallying to 26,267, is being watched for a move toward 26,500.
The main dissent is conditional: a contrarian thread warns Eurozone bank shares could suffer if a new debt crisis erupts in 2027, led by French political strain — a risk scenario, not a base case.