Vanguard FTSE Europe ETF

VGK

Market cap $27.4B

European stocks are expected to open lower on Tuesday, reversing largely positive sentiment at the start of the week.

European stocks are expected to open mostly higher Monday as markets keep a close eye on a new trade dispute between the U.S. and China.

Vanguard Europe ETF maintains a "Buy" rating, supported by strong momentum and attractive valuation despite a rising U.S. dollar. VGK trades at a significant discount to the S&P 500, with a low P/E ratio of 14.8x and a solid 2.7% dividend yield. The ETF offers broad sector diversification, leans toward value and large caps, and provides a strong alternative to US-only equity exposure.

European stocks are expected to hover around the flatline at the open on Wednesday as markets lack direction during a difficult week.

European stocks are expected to open mixed on Tuesday with all eyes on France after the resignation of Prime Minister Sebastien Lecornu.

Economists polled by Reuters had expected the rate to remain unchanged from July, at 2%.

French bond yields have risen significantly against German bunds and are likely to stay elevated or potentially move higher. The European Central Bank still appears to be a reliable backstop against excessive bond turmoil.

It's the year of foreign equities ETF diversification and performance. For many ETF issuers, their international or ex-U.S. ETF strategies have led their suites for performance amid rising domestic risks.

European Central Bank Governing Council Member Joachim Nagel says "the bar is high" to issue another interest rate cut. Speaking to Bloomberg TV's Lisa Abramowicz and Tom Keene, the Bundesbank president said the euro zone is in a “kind of equilibrium,” with inflation and interest rates both at 2%.

The EU's overall trade surplus shrank to 1.8 billion euros in June, down from 12.7 billion euros a month earlier.