1. Global investors are jumping on the European bandwagon, with the region seeing its biggest inflows in over two years.

Goldman Sachs strategists note that diversification outside the US has expanded.

There’s the potential for a Ukraine cease-fire to lower gas prices in Europe and lead to more fiscal spending, together with relief from the delayed implementation of reciprocal tariffs.

2. The Euro Stoxx 50 is now at an all-time high, after finally breaking a record that stood for 25 years.

The benchmark is now severely overbought and could be due a pause, but optimism is so strong that any pullback could be temporary.

The last four times the RSI (relative strength index) flashed a warning signal, the market consolidated but didn’t sustain a significant drop.

Also, the already bullish positioning might limit potential upside if the German election result or peace talks under deliver.

3. European pharma looks attractive.

The sector offers strong growth, compelling valuation, and a potential safe haven from policy challenges.

Absolute P/E is close to 10-year lows and is in line with the overall Europe equity market despite Pharma’s stronger EPS growth outlook (+12% on their forecasts, vs. +8% for the market).

4. Grok 3 (from xAI) is outperforming competitors.

Musk deserves credit for building this world-class reasoning model at record speed, proving that America still leads in AI.

5. The risk of a "power shortfall" for US data centers.

The large number of LLM introductions in the coming weeks (from xAI, Anthropic, OpenAI, and others) underscores the exponential pace of LLM development, and the need to rapid increases in infrastructure and computational requirements.

"A long history of algorithmic improvements suggest we shouldn't understate the incremental demand that comes from lower costs, more advanced capabilities, and continued scaling."

According to Morgan Stanley, they estimate a ~36 gigawatt shortfall in terms of US power access , through 2028.

A typical nuclear reactor produces 1 gigawatt (GW) of electricity.

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