Europe Equity Market Outlook: Q1 2026
Europe’s equity markets are anticipated to improve in 2026, though uncertainty lingers.
Last year proved the markets were at the mercy of volatility, and while there’s likely to be continued volatility in the new year, the bigger picture is looking brighter: Europe’s economy should experience growth in 2026, which should bolster the European equity markets. This means it’ll be harder for investors to find undervalued opportunities, but they still exist. Most stock sectors still hold hidden gems trading at 4 or 5 stars, and small cap stocks across the board offer great upside for long-term strategies.
Morningstar’s Q1 2026 report analyses the European equity markets by equity style box, global equity performance, sector valuations, and more. As investors wonder what this year will bring, now is more important than ever to find investments that account for risk and diversify your portfolio for the better.
Access the full report to discover which stocks are right for your investment goals in 2026.
