European Equities Have Started 2025 the Strongest

Key takeaways

• U.S. equities (measured by the S&P 500) are among the world’s worst performers in 2025 as of May 13
• European markets like Poland, Austria, and Greece have greatly outperformed

Good times in Europe

European stocks have outperformed so far in 2025 due to easing monetary policy from the European Central Bank, as well as a rebound in industrial activity across the region.

The ECB has implemented multiple interest rate cuts since mid-2024, with the most recent 25 basis point reduction in April 2025 lowering the deposit facility rate to 2.25%