Vanguard FTSE Europe ETF

VGK

Market cap $29.9B

VGK ETF remains a sell due to persistent structural natural gas shortages and looming energy crisis risks in Europe. European gas inventories have steadily declined versus the five-year average, with a supply-demand shortfall of ~2 Bcf/day set to worsen after the Russian LNG ban. VGK offers diversification, a low expense ratio (0.06%), and a 2.9% yield but faces macro headwinds from energy scarcity and weak industrial output.

The European Union plans to introduce ‌a raft of policies and funding schemes to shift more of its economy to run on electricity, instead of oil and gas, a draft European Commission proposal seen by Reuters showed.

Higher interest rates in some emerging Asian banking sectors will likely lead to slower credit growth by the end of 2027. Serbia's interest rate cap order will expire in September, and expectations of this are likely to boost credit growth before expiration.

The DAX is singled out as the market most likely to see squeeze-driven gains in the weeks ahead Citi has warned that European stock markets face a growing risk of short squeezes, as investors caught betting against rising prices are forced to buy back their positions. The US bank said global equity positioning remained supportive of further gains, but that regional differences were becoming more pronounced.

The European Central Bank has given eurozone banks four months to develop plans aimed at countering artificial intelligence (AI)-enabled cyber threats that could undermine confidence in the financial system and disrupt payment networks. The directive, issued on Tuesday, reflects growing concern among European regulators over the increasing cyber capabilities of advanced AI models.

The European Central Bank on Tuesday gave euro zone banks four months to draw up plans to counter AI-enabled cyber threats ​that could undermine confidence in the financial system and disrupt ‌payments.

The euro zone's economy ​is not back to its state before the Iran war ‌despite a drop in oil prices, as core inflation remains strong and price pressures continue, European Central Bank board member Isabel Schnabel said on Monday.

Eurozone retail sales rebounded in May, highlighting a brighter outlook for consumer demand, driven by sales of food, drinks and tobacco.

Europe's major stock markets ended higher on Friday, with the pan-European STOXX 600 and Germany's DAX reaching fresh record highs as investors welcomed easing expectations for near-term US interest rate hikes and rotated into cyclical sectors. The STOXX 600 climbed 0.7% to close at a record high after touching an intraday peak of 652.35, registering its strongest weekly gain since mid-May.

Europe's benchmark STOXX 600 index climbed to a record high of 653.19 on Friday before easing to trade around 652.66, putting it on track for its biggest weekly gain in more than a month. European equities are drawing a more constructive read from Wall Street, with several major brokerages revising their targets upward in recent weeks.