The STOXX 600 has passed 600 for the first time, and markets barely flinched. Rather than reacting to a single event, investors are steadily shifting capital into European equities with broader exposure and better risk balance.
Miners like Glencore and Rio Tinto are moving higher as metal prices rise, giving the index a push without relying on speculative momentum. This reflects a clear shift: capital is moving towards assets tied to real-world demand, with inflation protection built in. These companies are being bought for cash flow and pricing power. Technology stocks, by contrast, have cooled. Investors are taking profits after a strong run and reallocating into sectors with more grounded valuations.
Inflation continues to ease across the eurozone, and early business activity numbers are stabilising. Central banks are still cautious, but expectations for rate cuts later this year are building.
JPMorgan European Discovery Trust plc is an investment trust company. The Investment Trust JEDT objective is to achieve capital growth from a portfolio of quoted smaller companies in Europe, excluding the United Kingdom.
