New factors let global stocks rise

There are several reasons for this: economic programs in Germany, corporate reforms in Japan and South Korea, the devaluation of the US dollar, signs of stabilization in China and a better political environment in Europe.

Not US shares started well into 2025: the MSCI Europe, the MSCI Eafe and the MSCI ACWI EX USA have made solid profits while the S&P 500 broke.

« After the announcement of the customs changes on April 2, US shares and stocks from other countries were correlated-as you can expect in phases with strong market volatility, » says stock portfolio manager Samir Parekh. « As soon as the waves have smoothed out, it will not look better for US shares. Your ratings are much lower than those of shares from the USA. Many companies based on the USA are active at their home market and are therefore spared from the consequences of US politics. In addition, corporate governance improves in many countries. »

Germany’s economic stimulus programs set new accents for Europe

In Europe, they are perceived as « cost what it wants ». After the publication of a report by the economist and former Italian Prime Minister Mario Draghi to competitiveness in Europe, the member countries of the European Union focus on the revival of their economy and on increasing trade voltages with partner countries such as the USA and China.

In March, Germany – the largest economy in Europe and known for its economy – had announced one of the largest budgetary political turns since reunification in 1990. In addition, the supervisory environment also seems to change: investments are promoted and one shows itself open to changes.

« I am quite confident, » says share portfolio manager Gerald Dumanoir. « Growth programs in Germany benefit all of Europe, and industrial production could increase over the next three years. Nevertheless, it will take a while for the programs to be implemented and hit the business of the federal states. »

European commercial banks that have become more profitable and have accumulated high capital reserves are likely to benefit from government spending as well as German companies from the areas of defense, building materials and infrastructure. A whole series of attractive companies such as European insurance companies, telecommunications providers and suppliers are considered robust dividend payers that the US tariffs will hardly feel.

Because of the short -term effects of customs uncertainty, European growth may not be noticeably attracted until 2026.

Trading and company reforms could give Japan’s economy buoyancy

Japan could benefit from the reorganization of trade alliance. The average Japanese customs set is at the lowest of the world, so that in view of the recessed trade war, there may be productive negotiation opportunities.

In recent years, Japan has developed into an important free trade node with agreements such as Jefta, TPP and RCEP. During Trump’s first term, the country has also made trade agreements with the United States and continues to work with them in areas such as 5G networks, space research and medical research.

In addition, corporate governance becomes more important in Japan. There is still room for improvement in the profitability -enhancing reforms, but since 2023 they have ensured a stable performance of the MSCI Japan Index.

China could boost its economy with economic stimulus programs

As a measure against high US tariffs, the Chinese government could implement stronger economic stimulus programs from which Europe as one of the most important trading partners should benefit indirectly. China’s export -oriented economy could get into trouble through the new customs sets, especially if its producers overwood other markets with goods that were previously imported from the USA.

Larger growth programs could benefit internal -oriented companies, especially since the Chinese have formed high savings that can then be used for consumption.

The reviews are still attractive

In recent years
The most important argument compared to US shares were the most important argument
For systems outside the USA. But
The picture changes for the first time in a long time – thanks to new factors. Add
The increasing infrastructure investments. Other stock markets are
more diverse than the S&P 500, because here industries like the heavy industry,
Energy, raw materials and chemistry are weighted more than in the US index.

https://www.capitalgroup.com/europe/capitalideas/de/articles/new-catalysts-spur-global-stocks.html