Global investors are pouring record sums into European equities, as a desire to reduce exposure to the US meets growing optimism over the state of the region’s economy.
European stocks are headed for their highest ever monthly inflows in February, following two consecutive record weekly flows of about $10bn, according to data from EPFR, which tracks ETF and mutual fund flows.
The continent’s blue-chip Stoxx Europe 600 index has punched through a series of record highs this month, as have indices in the UK, France and Spain. European bourses have benefited from big investors’ desire to diversify away from Wall Street and its massive technology sector, which has been buffeted this year by concerns over a potential AI bubble.