European Stocks Poised to Outperform U.S. Equities in 2024

Strategists predict that European equities will outperform U.S. stocks in the first half of 2024, citing improving economic surprise indices and more favorable inflation figures in Europe. They also highlight the relative value trade opportunity, as European stocks are trading at an all-time multiple discount compared to their U.S. counterparts. Despite the strong performance of U.S. tech giants, European stocks are expected to benefit from lower interest rates and potential earnings growth. However, near-term headwinds and negative market surprises are anticipated, particularly as central banks adjust rate cut expectations. Overall, strategists forecast an 8% upside for European equities in 2024.