European competitors excel in the United States, where investors are betting on reviving growth

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The shares of the smaller Europe have raced against its peers in the United States this year, as investors are betting on economic recovery while trying to move away from the companies that were exposed to the trade war, Donald Trump.

Investors flocked to small and medium -sized companies that were not previously loved in Europe, as they were drawn up with low interest rates and promised to enhance growth from the historical stimulation plan of 1 Trip.

Through the Atlantic Ocean, Wall Street recovered from the sharp decline after President Trump announced the overwhelming definitions in early April that may be fed by “huge” technology shares in the country. Smaller stocks, which tend to be more associated with the wealth of the local economy.

This means that the difference of this year between European and American stocks was especially clear between small and medium stocks.

Since the beginning of 2025, the small MSCI EUROPE index and the center increased by 10.7 percent, while the United States index fell by 2.6 percent.

The equivalent indicators of major companies increased by 7 percent in Europe and 1.2 percent in the United States.

“We have seen increasing interest, especially from American investors, in the names of European minimal,” said Alexander Peter C., head of small and medium -sized stock research at Bernstein. He added that the clients “are looking for and ignoring high -quality shares, and preferred to be spent on European infrastructure and German” Bazooka “.

Low borrowing costs also helped. The European Central Bank recorded interest rates of half of its peak by 4 percent in June after the last discount on Thursday. This contradicts the United States, as federal policy makers move more slowly and indicated that they want to wait and see the effect of Trump’s tariff on inflation before reducing prices more.

“We are used to make us medium infidels (in our wallet),” said George Evestopoulos, director of the multiple assets portfolio in Foundelity International, said.

In Europe, the smaller stocks have been a 19 % larger performance since the beginning of 2022, but this gap has begun to narrow this year.

But the relative return of optimism about growth, as well as fears that the trade war will harm the largest -focused stocks, helped narrow this gap in 2025.

“We bought the post -birth weakness in the German intermediate plug and Greek stocks, which was” a very strong performance story, “said Evstopolos.

He added: “We are playing the topic of generating local revenues in a world of trade disturbances.”

Some analysts also say that the smaller European companies have benefited from renewed enthusiasm for storage strategies, as investors are trying to choose the winners and losers from the Trump attack.

“I am talking to people who usually do not invest except around the world, and when they look at Europe, they are specifically searching in active allocations,” said Jerry Fowler, head of the European stock strategy at UBS. “They want someone who understands that the prospects for companies in Europe differ greatly in the current context of definitions, currency movements and stimulus plans.”

“It was extremely difficult to file a small issue for us,” Fowler added, due to the concerns of Trump’s policy -making on the American economy.