Hit it when it is down: 11 more charts of why Europe stinks
Meet Europe - same as the old one
If you thought Europe was already cheap, think again. Only ~23% of stocks are oversold vs. prior panic levels, while growth gets slashed, confidence cracks in Spain/Italy and AI investment continues to bypass the region entirely. Long gone are the days of European spring. Here are 11 more charts on how challenged the continents is.
Not even there yet
Only 23% of SXXP is in oversold territory (vs. 43% in March '22 and 63% in April '25).
Source: Marquee
Consumer confidence taking a hit
Forget the "things can only get less worse" case. Consumer confidence is taking a serious hit especially in Spain and Italy - the previous bastion of strength.
Source: Haver
Nice downgrade
GS: "We have downgraded GDP growth in 2026 by around 0.7pp."
Source: Goldman
It even rains in Spain
Even "Golden Child" Spain sees numbers coming down.
Source: Haver
Stagflation bull
The EU Stagflation pair has performed strongly, in-line with higher inflation expectations.
Source: Marquee
Behind in AI investment
Chart shows Semiconductor sales / industrial production. Sales of integrated circuits historically follow the industrial cycle. AI infrastructure spending, however, has allowed for a surge in demand well above broad manufacturing applications - and Europe is of course doing what it does best - lagging.
Source: Numera
Low direct tech exposure
Tech stocks make up less than 10% of market cap in Europe. This is much lower than for the US and East Asia, and only slightly higher than the rest of the world (around 6%).
Source: Numera
Struggling to attract capital
Although European VC firms are increasingly focused on funding AI projects, they make up only 7% of overall VC investments in AI across the OECD.
Source: Preqin
IT not large enough to fuel EZ growth
The IT segment makes up only 6% of EZ GDP, which limits its contribution to EZ growth. Last year, the sector grew 3.4%, boosting EZ wide GDP growth by 20 bps.
Source: ECB
(Un)productivity
"One of the reasons why Americans are wealthier than Europeans is productivity. Europe, with its regulations, overtaxation, and left-redistribution mindset, throttles innovation, productivity and prosperity." (M Arouet)
Source: World Bank
Friendly German reminder
Germany has had no growth for years. It stayed flat only due to inflating its government spending while industry imploded.
