The American stock market is losing to the European one. For the first time in 25 years
26 March 2025 08:49
For the first time since 2000, European stock markets are showing better dynamics than American ones. Marketwatch reports this with reference to Deutsche Bank data, "Komersant Ukrainian" informs.
According to Deutsche Bank, since the beginning of 2025, the European Stoxx Europe 600 index has risen by 3%, while the US S&P 500 has lost 2%.
The last time Europe outperformed the United States in the stock market was in 2000, when the difference in returns was 10%. Europe also experienced similar favorable moments in 1997 and at the turn of 1989 and 1990.
What explains the current changes in the stock markets?
Deutsche Bank experts point out that since the beginning of the war in Ukraine and before the US elections last November, the difference in the P/E ratio – the ratio of price to earnings – between the US and Europe has increased by 4.5 points. And after the election, which was won by Republican Donald Trump, the gap narrowed by 2.7 points, which means that political factors had an impact.
Trump’s tariff policy remains a key driver of uncertainty. In March of this year, Bank of America recorded a record reduction in deposits from major players.
There was a drop in the value of the shares of the “Magnificent Seven” (Apple, Microsoft, Alphabet, Amazon, Nvidia, Meta, Tesla), which had previously been driving market growth.
Instead, the attractiveness of European stocks increased as hopes for a truce between Russia and Ukraine emerged.
According to Deutsche Bank strategists, the question of whether this upward trend for Europe can continue in the future remains open.
The ranking of the most expensive companies in Europe has also changed these days
German software developer SAP SE has managed to increase sales of cloud technologies and become the most expensive company in Europe thanks to the introduction of artificial intelligence. This was reported by Bloomberg.
On Monday, the company’s shares rose by 2.3%, bringing SAP’s estimated value to 312 billion euros ($338 billion).
The previous leader, the Danish drugmaker Novo Nordisk, lost the top spot. Since the beginning of 2025, Novo Nordisk has lost 18% amid controversial trials of a new generation of weight loss injections, CagriSema. On Monday, the company’s shares suffered another decline of 0.9%.
