iShares MSCI France ETF

EWQ

Market cap $389M

EWQ: Falling Real Rates Delayed The Bear Case, But 2026 May Not

European member states backed a free-trade agreement with the Mercosur bloc of South America, including Brazil, Argentina, Bolivia, Paraguay, and Uruguay. Some see it as both a political statement and an economic agreement.

The economists said those losses could be recouped if eurozone members lowered barriers to trade in goods and services within the currency area.

The ECB is very unlikely to raise its key interest rate this year, with a weaker dollar among a number of potential developments keeping eurozone inflation low, Bank of France Governor Francois Villeroy de Galhau said.

Germany's export-driven economy faces severe headwinds from US tariffs, euro appreciation, and lost access to cheap Russian energy. German trade surpluses are shrinking, with 2025 exports to the US projected down 7% and overall trade surplus far below 2024 levels.

European stocks are expected to open broadly higher on Tuesday as investors track developments following the U.S.' ouster of Venezuelan leader Nicolas Maduro.

European stocks are expected to open in broadly flat territory on Tuesday as markets continue to struggle for direction in a holiday-shortened trading week.

The Stoxx 600 notched a new record closing high, buoyed by Copenhagen-listed Novo Nordisk.

The iShares MSCI France ETF has outperformed the S&P 500 in 2025, benefiting from a stronger euro. With the ECB on hold and the Fed widely expected to continue with rate cuts, EUR/USD futures price in incremental EUR strength in 2026. Coupled with more attractive current valuations, this should allow EWQ to outperform the S&P 500 next year.

Eurozone consumer sentiment unexpectedly weakened in December despite cooling inflation and economic resilience against tariffs, a monthly indicator showed.