Investing

The European ETF market grew in January by a record 46.9 billion euro. In the shadow of that growth, a price war is taking place: mainstream ETFs are now being offered with an expense ratio of 0.03 percent. Will Europe soon welcome the “free” ETF, as in the US?

Political nervousness is rising over the potential victory of the far right in the French presidential elections of April 2027, as that could lead to less European integration. But the Investment Centre at ING Belgium currently sees no reason to adjust its investment policy.

The already downward-trending stock prices of major US private credit firms took another hit this month amid the markdown of the software sector and concerns about AI. While executives are trying to contain those concerns, analysts say market participants may already be pricing in risks that could affect clients later.

Spreads on European government bonds are at their lowest level since 2008. The periphery is benefiting from structural growth and European subsidies, while core countries such as France and Germany are weakening. Investors are wondering how much of that convergence remains once the carry trade turns.

Belgium was long known as a late adopter of ETFs. But over the past three years, adoption has clearly accelerated, at 13 percent per year. This has brought the market closer to the European average.

ASML shares took a hit last week, after the company had risen in January to become Europe’s largest listed company. That has once again fuelled the question of whether the Dutch chip-equipment maker has become too big, too loved and too expensive. But how convincing are those doubts, really?

In the new multipolar world order, globalization is a thing of the past. Yet Charu Chanana, chief investment strategist at Saxo, still advises investors to allocate capital across continents. She recently flew in from Singapore for a European roadshow with investors.

Chinese equities have outperformed Wall Street for two consecutive years, yet the label ‘uninvestable’ continues to stick, analysts say. China bulls have not abandoned the market, but they remain divided over whether state-owned enterprises should be kept or avoided.

An uptick of volatility in the dollar is forcing European investors to confront an awkward choice. With hedging already expensive, some are paying up to protect against further weakness. Others are opting to take the risk, arguing the bulk of the adjustment may already be behind them.

Europe’s failure to complete its capital markets integration carries a measurable economic cost of around 150 billion euro per year in lost investment, according to a new report from the Citi Institute. Over a ten-year period, the drag on economic growth could amount to roughly 1.5 percent of GDP.