Francesco Ceccato, the CEO of Barclays Europe, expressed optimism about the investment potential in Europe in an interview with Euronews. Ceccato highlighted the recent positive performance of European stocks compared to the downturn in the US stock market. A report by Morgan Stanley confirmed that European equities have been outperforming US stocks significantly this year, with the MSCI Europe Index climbing over 9% while the S&P fell by 4.5%.

The latest Fund Manager Survey by Bank of America revealed a notable shift in investment sentiment from US to European equities. A high percentage of fund managers are now holding overweight positions in European equities, signaling a strong preference for European markets. Despite the recent surge, experts at Goldman Sachs predict a sustained growth in European equities, forecasting a possible increase of up to 6% in the coming year.

Ceccato also discussed concerns over the impact of trade disputes under the Trump administration, particularly the imposition of tariffs on various imports. He pointed out that the trade policies could adversely affect economic growth and inflation in the US and European economies. Ceccato warned that if a 25% tariff is applied to the €480 billion of goods exported by the eurozone to the US, it could potentially push the eurozone into a recession.