Euronext sees investors moving money to Europe in US rethink
Euronext CEO Stéphane Boujnah: 'We are facing a de facto stimulus program in Europe, driven by massive investments coming in infrastructure'. File Picture: euronext.com
The Trump administration's policies in the US have created “massive volatility”, accelerating a flow of funds globally to Europe where valuations remain cheaper, Mr Boujnah said in an interview on Bloomberg TV.
“Trump’s policies have injected massive volatility in the market, in particular with the hesitation on tariffs every day,” Mr Boujnah said.
“There is a fundamental rethinking of investing in the US for European firms, because it is becoming a fundamentally different country.”
European stocks have outperformed those in the US this year amid concern that tariffs imposed by Washington will weigh on growth in the world’s largest economy.
While a trade war with the US would create a “lose-lose situation”, the money flow into Europe has been accelerated by the prospect of massive stimulus, Mr Boujnah said.
Lawmakers in Germany were scheduled to vote on a bill on Tuesday that would unlock hundreds of billions of euros in debt-financed defence and infrastructure spending, heralding a pivot toward a substantially more expansive fiscal policy.
“We are facing a de facto stimulus program in Europe, driven by massive investments coming in infrastructure,” Mr Boujnah said.
Mr Boujnah said he is optimistic that IPOs would rebound along with markets, and that some firms that were considering a US listing are re-evaluating their plans.
Stada Arzneimittel AG’s private equity owners are pushing back a planned IPO of the German drugmaker due to market volatility, people familiar with the matter have said.
- Bloomberg
