Europe Lacks Everything Needed to Make Its Stock Market a Winner

The equity story that powered European stocks has unraveled as investors seek shelter from a global energy shock and buy into the artificial intelligence frenzy.

European stocks had been zooming higher prior to the Middle East war as investors diversified out of the US and piled into the region’s much cheaper stocks. But that narrative has given way to new realities: Europe’s economy is exposed to inflation and supply chain disruptions caused by the conflict, and it’s home to almost none of the companies at the heart of the AI boom.