H2CY26 might see European equities faring better than US equities on account of continued defence spending in Europe along with fading impact of the energy conflict which impacted Europe much worse than US. Also, it seems that H2CY26 might see the onset of crack in AI led capex theme which has worked out well for US till now. S&P 500 has given a YTD return of 15.82% compared to Eurostoxx YTD return of 14.23%. Both are in dollar terms. This we believe is likely to change in favor of Europe in H2CY26.
