European Risk Appetite Rebounds on Capital Inflows and Strong Earnings

Citigroup notes European equities are the sole major market with improved risk sentiment, driven by fresh inflows and earnings beats, contrasting with US weakness.

Woofun AI reports that Citigroup strategist David Chew identified the European stock market as the only major region experiencing a significant recent improvement in risk appetite.

This shift is attributed to new capital inflows and corporate earnings that exceeded expectations. Chew highlighted that investment sentiment across major European indices strengthened last week, diverging from declining confidence indicators in the U.S. market. The strategist also noted that the European Central Bank’s decision to hold interest rates steady provided further support to the region.