iShares MSCI Germany ETF

EWG

Market cap $1.47B

Market expectations that the European Central Bank will hike interest rates this year have already contributed to tighter financial and lending conditions. The "transmission of tighter policy is already underway," Goldman Sachs noted.

The iShares MSCI Germany ETF is rated a cautious buy, reflecting upside potential despite recent underperformance versus global and European benchmarks. EWG's prospects hinge on German industrials and financials, with improving factory orders, potential defense spending, and strong bank capital positions supporting recovery. Favorable valuation-to-growth metrics, better prospects for the Euro, technical momentum, and an imminent breakout bolster the investment case for EWG.

The European Central Bank's decision to keep rates ​unchanged last month was ‌a close call for some policymakers as signs of persistently high ​inflation made it hard ​to look past the energy-driven shock, ⁠the accounts of the ​meeting showed on Thursday.

A combined German-Dutch army corps will take command of NATO land forces in Estonia and Latvia ​later this year to strengthen the alliance's eastern ‌flank against a potential Russian attack, the countries said on Thursday.

European shares will struggle to post further gains for the rest of this year, a Reuters poll found, weighed down by the ​economic hit from the Iran war and a relative lack of popular AI-related stocks.

The European Central Bank "will do what is necessary" to keep inflation on target, one of its top policymakers told CNBC. Markets are overwhelmingly pricing in a rate hike from the central bank at its next meeting.

Germany is ready to compromise in negotiations on the European ​Union's capital markets union, including on ‌the sensitive question of financial supervision, Finance Minister Lars Klingbeil said on Thursday.

European stocks were set to open lower Tuesday, as traders watched developments in the Middle East and Ukraine.

While U.S. markets are closed for Memorial Day, stocks in Europe and Asia soared on Monday amid optimism about a potential end to the Iran war and reopening of the Strait of Hormuz. Japan's benchmark Nikkei 225 index soared 2.87%, while South Korea's KOSPI rose 0.41%, Hong Kong's Hang Seng climbed 0.86% and India's BSE Sensex bounced up 1.2%.

European startups like Legora and Lovable are challenging US tech dominance with rapid growth. AI advancements and improved capital access are enabling Europe's tech scene to thrive globally.