Vanguard FTSE Europe ETF

VGK

Market cap $30.2B

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.

When currency swings punish domestic investors and geopolitical headlines scream crisis, the stocks underneath often tell a different story.

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.

First Trust STOXX® European Select Dividend Index Fund earns a strong buy rating for its smart beta dividend strategy tailored to Europe's value-centric market. FDD's high-conviction, quality dividend screening delivers superior risk-adjusted returns and capitalizes on financials' outperformance in a high-rate environment. Vanguard FTSE Europe ETF receives a buy rating for low cost, broad diversification but lacks FDD's alpha-generating value tilt.

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