Spending sparks opportunities in industrials

Share earnings from European industrials are set to rise as a result of increased defence spending, AI data centre constructions, and public infrastructure investment in Germany. Over the next two years, industrial EPS growth is projected to be the third highest in the MSCI Europe Index, driven by aerospace and defence stocks. Countries’ defence spending, if sourced from within Europe, may boost economic growth on the continent. However, the industrial sector's exposure to the US means tariffs may potentially impact profits in the short term. Learn more about the factors driving European...