European stocks to scale new heights in 2026, trade tensions temper loftier hopes
1. European shares may rise due to monetary easing and fiscal spending. 2. Trade uncertainties could limit significant gains in the stock market.
FAQ
Why Neutral?
While monetary easing typically supports equities, ongoing trade uncertainties could hinder overall growth, similar to past scenarios where geopolitical tensions affected market performance.
How important is it?
Monetary easing and increased spending can indirectly benefit U.S. markets, but trade uncertainties may dampen expectations.
Why Long Term?
The anticipated fiscal policies will take time to affect markets positively, as seen after the 2008 financial crisis when stimulus measures led to gradual market recoveries.