European stocks lose their edge over the US
European stocks are losing ground to the US, driven by concerns over high oil prices and geopolitical tensions. Meanwhile, strong tech companies continue to support the US market.
April 24, 2026 | SOURCES | INTERNATIONAL POLITICS
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US regains leadership in the stock market
European stocks are now underperforming their US counterparts after a period of narrowing the gap. The broad European index has risen 3.3% so far this year, compared with a 3.8% gain for its US equivalent, putting the US back in the lead. This is bad news for the European Union; it gives the United States an advantage in the trade negotiations that have been taking place in Washington, D.C. yesterday and today, read more here.
High oil prices and geopolitics weigh on sentiment
A key driver behind this trend is concern over persistently high oil prices. Higher energy costs can slow economic growth by reducing spending power for both businesses and consumers. At the same time, the conflict in Iran is adding uncertainty around inflation and future economic stability, making investors more cautious.
Europe lags the global rebound
In recent weeks, European stocks have also lagged the broader global market recovery. Investors worry that the war could have long-lasting effects, particularly on price levels and consumer confidence.
Technology boosts US markets
The picture is different in the US, where stocks have shown greater resilience. Strong earnings from technology companies, especially those benefiting from artificial intelligence, have helped lift the market. Market participants say the latest earnings season confirms that US leadership is strengthening again, driven by its dominance in technology and semiconductors.
Bright spots in European tech
There are still positive signs in Europe. German software company SAP recently lifted the region’s tech sector after reporting solid growth in its cloud business. The stock rose about 5%, boosting investor confidence in its outlook.
Uncertain outlook ahead
Future market developments will largely depend on energy prices, geopolitical stability and whether European companies can deliver stronger earnings. For now, the US appears to hold a small but clear advantage.
SOURCES
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