Weekly Espresso
The recent optimism surrounding the potential for European equities to outperform their U.S. counterparts appears to be waning, as concerns about an economic slowdown have started to weigh on European earnings forecasts. While Europe initially seemed poised to benefit from a rotation away from large-cap technology stocks, investors are increasingly favouring undervalued sectors within the U.S. market. This shift in preference is largely driven by data indicating the resilience of the U.S. economy, coupled with growing expectations that the Federal Reserve may implement interest rate cuts sooner and more aggressively than previously projected