"European Stocks": Several Wall Street major banks expect that the turmoil in the French political situation will not impact European stocks

French Prime Minister Élisabeth Borne unexpectedly decided to hold a confidence vote on the budget, affecting market sentiment. However, Goldman Sachs, Citigroup, and JPMorgan Asset Management believe that the news of political turmoil in France has already been digested by the market. Coupled with Germany's historic fiscal reforms and the strong economic growth prospects in the region, they believe the risk of the crisis spreading to other European countries is low, and this will not be enough to affect the European stock market's best performance relative to the U.S. stock market in nearly twenty years.

Citigroup strategist Beata Manthey stated that the reasons for being optimistic about the European market have always come from Germany, and the situation in Germany has not changed. The prices of French assets have also reflected some political risk premium. Goldman Sachs indicated that the current political crisis in France will not impact economic growth, and regarding the European market, it seems not to be a significant issue. Société Générale noted that with optimistic economic data and an improving outlook for the Chinese economy, these factors are more important for market trends than political uncertainty