What might be next for European stocks?

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European stocks were the surprise winners of 2023. Could it be the same in 2024?

This article isn’t personal advice. If you’re not sure whether an investment is right for you please seek advice. If you choose to invest the value of your investment will rise and fall, so you could get back less than you put in.

Published on 12 January 2024

It was correct at the time of publishing. Our views and any references to tax, investment and pension rules may have changed since then.

2023 could be called the year of the ‘magnificent 7’, referring to the seven US tech giants that dominated investing headlines – Apple, Amazon, Alphabet, Microsoft, Meta, Tesla, and Nvidia.

However, back on this side of the Atlantic, European stocks were making their own waves and even breaking records.

Italy’s FTSE MIB rose 28%* in 2023. Spain’s Ibex 35 rose 22%, and Germany’s Dax index rose to a fresh record high and was 20% higher in 2023.

Overall, the Eurostoxx 50, an index of Europe’s 50 largest companies, rose by a respectable 19%.

Europe’s top performer last year, the Italian FTSE MIB index, hit its highest level since 2008. Its market capitalisation increased by more than 20% in 2023 to €761bn, nearly 40% of Italian GDP.

Past performance isn’t a guide to the future. *Source: Bloomberg 31/12/2023.

This article isn’t personal advice. If you’re not sure whether an