European equities face a much brighter outlook in 2025 amid improving economic prospects and a low bar for corporate earnings after badly lagging US stocks last year, according to strategists at Deutsche Bank AG.

Deutsche Bank and Citigroup have turned bullish on European equities as lower interest rates, hopes of a strong corporate earnings season and an improving political outlook are expected to bolster sentiment in 2025.

EUROPEAN markets closed higher on Monday (Jan 6), as investor optimism was fuelled by a report suggesting that US tariffs might be less severe than previously feared, boosting the automobile sector. Read more at The Business Times.

European shares dipped on Wednesday, as bond yields surged after investors priced in fewer interest rate cuts in Europe and the U.S. this year, while concerns about new tariffs under Donald Trump's presidency also weighed on sentiment.

European equities fell on Wednesday, pressured by rising bond yields and trepidation over how President-elect Donald Trump’s policies will impact global trade.