Barclays strategists said that, boosted by market concerns about the AI sector, the European stock market is still attractive, and regional profits are showing resilience. The team, led by Emmanuel Cau and Magesh Kumar Chandrasekaran, said: “In our opinion, the relative risk-return of European assets is fair.” The strategist said that earnings performance in this financial reporting season is only slowing down, not worsening; Europe's earnings per share growth rate is narrowing the gap with the US. Supported by AI capital expenditure and favorable energy factors, the profit momentum in the current cycle phase is extremely strong. They believe that the weakening cash flow of large cloud service providers and the continued increase in capital investment mean that market concerns about AI may continue, which will marginally benefit European stocks.

Barclays strategists said that, boosted by market concerns about the AI sector, the European stock market is still attractive, and regional profits are showing resilience. The team, led by Emmanuel Cau and Magesh Kumar Chandrasekaran, said: “In our opinion, the relative risk-return of European assets is fair.” The strategist said that earnings performance in this financial reporting season is only slowing down, not worsening; Europe's earnings per share growth rate is narrowing the gap with the US. Supported by AI capital expenditure and favorable energy factors, the profit momentum in the current cycle phase is extremely strong. They believe that the weakening cash flow of large cloud service providers and the continued increase in capital investment mean that market concerns about AI may continue, which will marginally benefit European stocks.