Make Europe Great Again

Wednesday 5 February 2025

The Market Ear with more.

MEGA

Coming into Tariff Monday, Europe was experiencing its second-best start to the year and SXXP hit an ATH – of course, skeptics will highlight that this is against a low bar, and the outperformance is mostly valuation-driven (as opposed to earnings-inspired). However, 21 of 25 EU sectors have outperformed US equivalents since late last month, and bulls feel that we might have bid adieu to peak uncertainty. Here are all the latest things on the MEGA trade.

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About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.