iShare MSCI Eurozone ETF

EZU

Market cap $9.35B

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.

From AI dominance to gold's historic surge and global stocks beating the United States, 2025 was a blockbuster year for ETFs like GLD, GDX, EZU & IDV.

I initiate coverage on the iShares MSCI Eurozone ETF with a 'buy' rating, citing its diversified Eurozone exposure. European shares are well priced compared to their US peers based on both P/E and PEG ratios. Trade continues to be resilient, supporting international exposure in 2026.

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.

I expect modest US equity gains in 2026, with the S&P 500 ending near 7,110 and Dow outperforming tech-heavy indices. European markets face greater uncertainty, but potential peace in Ukraine could lower energy costs and create reconstruction opportunities. Energy and European real estate sectors offer attractive risk/reward, especially as integrated producers refocus and REITs benefit from lower financing costs.

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