#european-equities

#european-equities

However, for investors seeking more diversification, I think it can pay dividends (quite literally) to consider complementing a U.S. equity-heavy portfolio with some European names. Sure, going 100% (or close to it) in the U.S. names will grant you a front-row seat to America's long-term ascent, and there's nothing fundamentally wrong with doing so. However, I believe it doesn't hurt to add some international exposure as well for the value of geographic diversification and, perhaps more importantly, lower valuations.

European equities edged higher on Wednesday, buoyed by a more dovish tone from Federal Reserve Chair Jerome Powell, a tentative easing of political tensions in France, and signs of cooling inflation across key Eurozone economies. The combination of stabilising macro signals and upbeat corporate news helped lift regional indices after recent bouts of volatility. Investor sentiment improved following Powell's remarks, suggesting the US labour market was showing signs of softening, reinforcing expectations of a potential rate cut later this year.

Perhaps as a foretaste of seasonal volatility stocks fell Friday as US tech - specifically chipmakers - wobbled, with the Nasdaq down more than 1% for the session. Nvidia was down more than 3% to extend its weakness in the wake of earnings. This seemed to weigh on Asian equities on Monday, but Hong Kong rallied 2% on a huge surge in Alibaba shares, which jumped 15% on its AI revenue growth.