---
title: Many investors bet Germany’s “whatever it takes” fiscal stimulus package and an enormous uplift in European defence spending would drive a prolonged upturn in the region’s equity markets.
description: "A BofA survey of fund managers showed allocations to Eurozone stocks leapt to their highest level since 2021 at the beginning of this year.\n\nBut the outperformance was short lived. Strong earnings from the US mega caps have sent Wall Street stocks powering ahead again, despite Trump’s tariff onslaught and deteriorating US economic data. Weak second-quarter earnings in Europe have supported the growing view that the region’s stock rally is losing momentum.\n\nWith more than half of the companies in the Stoxx Europe 600 having reported earnings, the index is on track for no earnings growth compared with a year ago, according to Bank of America, sapping optimism over a revival in the region’s equity markets.\n\nBy contrast, the S&P 500 index’s constituents are on track to post 9 per cent year-on-year average earnings growth, according to BofA, powered largely by strong results from Silicon Valley’s tech giants and Wall Street banks.\n\nSource: Financial Times, LSEG"
---

[Syz The Moment](https://blog.syzgroup.com/syz-the-moment)

# [Many investors bet Germany’s “whatever it takes” fiscal stimulus package and an enormous uplift in European defence spending would drive a prolonged upturn in the region’s equity markets.](https://blog.syzgroup.com/syz-the-moment/many-investors-bet-germanys-whatever-it-takes-fiscal-stimulus-package-and-an-enormous-uplift-in-european-defence-spending-would-drive-a-prolonged-1754568365644)

 Written by [Charles-Henry Monchau, CFA, CMT, CAIA](https://blog.syzgroup.com/syz-the-moment/author/charles-henry-monchau) | Aug 7, 2025, 12:06:55 PM

[View full post](https://blog.syzgroup.com/syz-the-moment/many-investors-bet-germanys-whatever-it-takes-fiscal-stimulus-package-and-an-enormous-uplift-in-european-defence-spending-would-drive-a-prolonged-1754568365644)

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