The pan-European Stoxx 600 index has proved resilient this year so far. BNP Paribas believes Europe is more likely to be an AI beneficiary rather than a developer:
Goldman Sachs notes that Europe being behind on the AI trade may not be such a bad thing:
European equities have historically struggled to ignite the kind of investor enthusiasm enjoyed by U.S. stocks and certain fast-growing Asian markets, but this year the Stoxx 600 is up 10%:
Goldman Sachs attempted to dispel some of the 'myths' about investing in Europe. 'Performance [in Europe] has been far more mixed than the market narrative, or most investors realize,' the analysts wrote:
The European autos sector, however, has been struggling as demand for electric vehicles has slowed and competition from China has intensified:
Does Europe need to embrace AI?
BNP Paribas believes the autos sector stands to benefit from AI development:
'At this point the sector is so cheap that no one is really thinking about the potential upside in there,' Sophie Huynh noted:
