Europe Equity Market Outlook: Q4 2025
Risks remain, but Europe is well positioned
European equity markets have rebounded in 2025, supported by a strengthening macroeconomic outlook and improving trade clarity. With GDP growth expectations rising and inflation risks easing, potential interest rate cuts could further fuel market momentum. European stocks remain attractively priced compared to the US, especially among small and mid-cap companies, which offer notable upside.
Sector performance has been mixed, with financials and industrials leading returns, while healthcare presents compelling value opportunities. Despite ongoing tariff and trade uncertainties, improved relations between the US, UK, and Europe are adding stability and could further boost sentiment.
Our Q4 2025 report analyses the European equity markets by equity style box, global equity performance, sector valuations, and more.
Download the report to find out how these key insights may impact your investing strategy.
