European equities monthly round-up – February 2025 – Europe widens the gap with the US

European stock markets continued in February their rally initiated in January, outperforming US equities: +3.3% for the Stoxx 600, -1.4% for the S&P 500. Banks (+12.8%) largely drove European markets, and in particular the Ibex 35 (+7.9%). Value stocks outperformed growth stocks, despite a slight decline in long-term sovereign yields. In the immediate future, geopolitical developments concerning Ukraine will continue to focus investors' attention, as will stimulus plans (Chinese, German), Donald Trump's tariff U-turns and "hard” macro publications in the United States and Europe.