Goldman Says Stoxx 600 Defies Europe Myths With 10% Gain in 2026

1 articles · Updated · CNBC · Aug 16

Goldman Sachs argued in an Aug. 10 note that European equities have been stronger than investors assume, with the Stoxx 600 up 10% in 2026 and showing resilience despite weaker sentiment toward the region.
That case rests on relative performance: Goldman said European banks have outperformed the U.S. Magnificent 7 since 2022, and the Stoxx 600 has beaten the S&P 500 since early 2025 despite tariff shocks and an energy supply crisis.
Goldman also challenged the view that China is a broad threat to listed European companies, saying heavyweight sectors such as financials, pharma, tech and defense are not especially exposed, while autos account for just 1% of market cap.
Autos remain the clearest weak spot — the Stoxx Autos index is down 16% this year, with Volkswagen off 27.6% and Stellantis down 51.9% — though BNP Paribas says the battered sector could still benefit from AI adoption.
The broader pitch is that Europe may appeal as an AI hedge: Goldman says lagging data-center and frontier-model investment is a disadvantage, but also leaves the market less exposed to crowded AI trades and China-related risks.