The pan-European Stoxx 600 index has risen 10% in 2026 so far, defying expectations as European markets remain overlooked by investors. Goldman Sachs said in an August 10 note that European banks have considerably outperformed the Magnificent 7 since 2022, and that the Stoxx has also beaten the S&P 500 since early 2025 despite tariff shocks and an energy supply crisis. Contrary to concerns, Chinese competition poses limited risk since autos represent only 1% of Europe’s market cap. BNP Paribas believes Europe is more likely to be an AI beneficiary than a developer, with the autos sector offering a substantial long-term deep value opportunity.
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