European stocks attract $4.4 billion in inflows as profits rise

ME News reports that, as of August 9 (UTC+8), major European stock indices continued to hit new highs over the past week, including the Stoxx Europe 600, Germany’s DAX, the UK’s FTSE 100, and France’s CAC 40. According to FactSet data, companies in the Stoxx Europe 600 are forecast to post a 22% year-over-year profit growth in the second quarter—the strongest earnings growth since 2022. Bloomberg data shows that July marked the first net inflow into European equity ETFs since the start of the U.S.-Iran conflict in late February. BlackRock also reported $4.4 billion in net inflows into its European equity products in July. Morgan Stanley European equity strategist Marina Zavolock noted that recent strong earnings have boosted investor interest in “diversifying allocations” into European stocks. This shift follows significant selling pressure on global semiconductor stocks in July, prompting investors to refocus on Europe, where market returns are less dependent on technology and AI stocks. (Source: ODAILY)