European stocks are trading at a wider-than-usual discount vs their US counterparts, per Goldman
Source: Markets & Mayhem on X
Magnificent European Aerospace & Defence
Source: @MikeZaccardi on X
This chart from, BNP / EPFR indicates that the strong outperformance of European stocks this year was primarily driven by US investors shifting their investments into Europe.
In contrast, European investors made only modest shifts. Source: HolgerZ
The top 3 country equity ETFs so far in 2025:
1) Poland $EPOL: +54.5% 2) Greece $GREK: +52.2% 3) Austria $EWO: +42.6% Source: Charlie Bilello
We have a new YTD country ETF leader -> Greece
Source: Mike Zaccardi, CFA, CMT, MBA
Germany and Italy are facing calls to move their gold out of New York following President Donald Trump’s repeated attacks on the US Federal Reserve and increasing geopolitical turbulence.
Fabio De Masi, a former Die Linke MEP who joined the leftwing populist BSW party, told the Financial Times that there were “strong arguments” for relocating more gold to Europe or Germany “in turbulent times”. Germany and Italy hold the world’s second- and third-largest national gold reserves after the US, with reserves of 3,352 tonnes and 2,452 tonnes, respectively, according to World Gold Council data. Both rely heavily on the New York Federal Reserve in Manhattan as a custodian, each storing more than a third of their bullion in the US. Between them, the gold stored in the US has a market value of more than $245bn, according to FT calculations. The Taxpayers Association of Europe has sent letters to the finance ministries and central banks of both Germany and Italy, urging policymakers to reconsider their reliance on the Fed as a custodian for their gold. Source: FT
In case you missed it: Germany’s private sector economy unexpectedly returned to growth in June.
The composite PMI rose to 50.4, up from 48.5 in May, signaling a move back into expansion territory. Manufacturing – a key sector for Germany – saw its PMI climb to 49, the highest level since 2022. While still below the long-term avg of 51.6, it's a notable improvement. The sector appears to be benefiting strongly from falling interest rates, which may help explain why Germany is currently outperforming much of the rest of the Eurozone. Source: HolgerZ, Bloomberg
In case you missed it: Italy's total government debt has topped €3tn, for the 1st time ever.
Source: HolgerZ, Bloomberg
