Europe’s markets regain their footing

Last year was turbulent for European equity markets due to geopolitical shocks and policy shifts. Looking ahead – barring any additional surprises – the region is set for a strong start to 2026. The macroeconomic environment is improving, with GDP growth expected and further rate cuts not ruled out. There are reasons to be positive, but uncertainty levels remain high. European markets now trade at just 1% below fair value estimates, due to clearer trade conditions and a firmer economic backdrop. Most major regions also offer a similarly limited level of upside to each other. Valuations across...