Group 1 - The recent rebound in US stocks has weakened investor confidence in the sustainability of the European shift strategy, but analysts believe the strong performance of the euro presents new opportunities for investors [1][4] - As of last Friday, the Stoxx 600 index has risen 6.6% this year, while the S&P 500 index has increased by 6.8%. In March, the Stoxx index was leading by 10 percentage points, but the strong rebound in US tech stocks reversed this trend [1][4] - The euro has appreciated by 14% against the dollar this year, nearing the 1.20 USD mark, which could support returns on European stocks and erode returns on US stocks if the euro remains strong [1][4] Group 2 - Many analysts initially predicted the euro would fall below 1 USD, but it is now approaching 1.20 USD. Deutsche Bank's forex strategy head noted that foreign investors can weaken the dollar by simply refusing to buy more US assets [4] - The S&P 500 index, despite reaching a historical high, has seen a 9% decline when priced in euros since its February peak, indicating that currency fluctuations significantly impact returns for euro-based investors [5] Group 3 - The rebound in US stocks since mid-April is partly attributed to the shift from trade war to trade negotiations, with a significant turning point occurring during the earnings season when tech CEOs projected strong profits [6] - The tech sector, which constitutes about one-third of the S&P 500 index, has risen 24% since early April, with Nvidia, the largest company by market capitalization, increasing by 45%. In contrast, the European market lacks similar standout stocks [6] - DWS forecasts that GDP growth in the US and Europe will be similar in 2025 and 2026, providing sustainable momentum for European corporate earnings. The forward P/E ratio for the S&P 500 is slightly above 20, while the Stoxx 600 is below 15 [6] Group 4 - Investor interest in European stocks is primarily focused on the defense and banking sectors, with estimates showing the defense sector has risen by 50% this year and the banking sector by 28%, contributing over 50% of the Stoxx 600 index's returns despite only accounting for 16% of the index's weight [6]