Barclays Europe CEO: Trump’s Tariffs Could Boost EU Economy

Barclays Europe CEO Francesco Ceccato shared his insights on the potential impact of U.S. tariffs on Europe’s economy and whether the continent remains attractive to investors.

A net 39% of fund managers now hold overweight positions in European equities—the highest level since mid-2021—while 23% are underweight on U.S. stocks. I Photo: GroupEditor Wikimedia Commons

“There is a foundation to believe in the attractiveness of Europe, especially on a relative basis,” Ceccato told Euronews Business Editor Angela Barnes in an exclusive interview.

He pointed to recent stock market trends, noting that while the U.S. stock market has faced compression, European indices have risen. A Morgan Stanley report highlighted that European equities have outperformed U.S. stocks by the widest margin since 2000, with the MSCI Europe Index up over 9% since January, compared to the S&P 500’s 4.5% decline.

Additionally, Bank of America's latest Fund Manager Survey showed the most significant shift from U.S. to European equities since records began in 1999.

A net 39% of fund managers now hold overweight positions in European equities—the highest level since mid-2021—while 23% are underweight on U.S. stocks. Goldman Sachs predicts European equities could gain another 6% over the next 12 months.

Ceccato emphasized the need for Europe to leverage institutional capital alongside public investments to support its industries. Compared to U.S. firms, European companies face challenges in accessing capital due to market fragmentation and a risk-averse financial environment.