European small-caps outshine US rivals as investors bet on growth revival
European small- and mid-cap stocks are outperforming their U.S. counterparts in 2025, driven by investor optimism about Europe’s economic recovery and strategic avoidance of U.S. trade policy risks. The MSCI Europe Small and Mid Cap Index has surged 10.7% year-to-date, while the U.S. equivalent has declined by 2.6%. Key factors contributing to this trend include…