Goldman Sachs The Markets European opportunities
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Jun 20, 2025 John Storey, Co-Head of Equities Distribution at Goldman Sachs, shares his insights on the European equities market. He discusses how European financials are outperforming U.S. tech companies, highlighting a surprising turnaround for European banks. Storey dives into investment strategies, emphasizing the importance of understanding geopolitical risks and energy dependence. Listeners will also appreciate his personal reflections, blending market analysis with memorable experiences in music and sports—making finance relatable and engaging.
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Europe's Strong Equity Performance
- European stocks have outperformed US stocks significantly in local and US dollar terms this year, especially in Germany, Italy, and Spain.
- European banks have even outperformed big US tech stocks since 2022, reversing past perceptions.
Valuation and Fiscal Catalysts
- Valuation differences drove early year interest in European stocks as they traded at a discount to US equities.
- Fiscal spending catalysts added to the positive outlook for European equities.
Tariffs and Currency Impact
- Tariff concerns remain a market worry, with a critical July 9th deadline approaching for US-Europe trade talks.
- About half of European earnings come from outside Europe; currency moves impact earnings but correlate with equity returns.