European equities are attracting increased interest from global investors as stronger earnings, improving economic data and broader market participation support expectations that the rally could continue, Bloomberg reported. The Stoxx Europe 600 Index rose during every session last week, its longest winning streak since June, and has gained 11% in 2026, while Germany's DAX, France's CAC 40 and Italy's FTSE MIB have reached record highs. European corporate earnings increased 17%, the strongest growth in four years, and regional economic momentum reached its highest level since March 2023. A Bank of America survey found that a net 2% of fund managers were overweight European equities, compared with a net 15% who were underweight in June. Around 75% of Stoxx 600 constituents trade above their 200-day moving averages, near the highest proportion recorded over the past decade outside major post-crisis recoveries.
