Investment Institute
Market Updates

3 reasons to invest in Europe

KEY POINTS

The European Union: an economic heavyweight
Deep investment potential
Global sustainability leader

The European Union: an economic heavyweight1

Home to 448 million plus consumers

World’s biggest single market; one of the world’s largest economies

Largest exporter of manufactured goods and services

Top trading partner for 80 countries; the US is the top trading partner for just over 20

  • {https://european-union.europa.eu/principles-countries-history/facts-and-figures-european-union_en;Facts and figures on the European Union}

Deep investment potential

Euronext is one of the world’s largest stock exchanges - $6trn market cap and over 1,800 listed issuers2

European earnings growth has shown robust resilience3

European bond markets supported by resilient fundamentals, attractive yields and strong inflows

Supportive government policy – Germany has earmarked €1trn for defence and infrastructure spendingDeep investment potential

  • {https://www.bankrate.com/investing/worlds-largest-stock-exchanges-biggest-by-market-capitalization;The world's largest stock exchanges: 10 biggest by market capitalization, Bankrate, 31 July 2025}
  • {https://www.axa-im.co.uk/investment-institute/market-views/market-updates/paranoid#:~:text=Equity%20analysts%20continue%20to%20expect,15%25%20for%20Q2%20so%20far;AXA IM, 1 August 2025}

Global sustainability leader

Driving force behind international climate initiatives

European Green Deal aims to make Europe the first climate-neutral continent by 2050

The European Commission has pledged to mobilise at least €1trn in sustainable investments over the next decade4

Globally, Europe is the largest issuer of green bonds with its market valued at more than €1trn5

  • {https://commission.europa.eu/strategy-and-policy/priorities-2019-2024/european-green-deal/finance-and-green-deal_en;Finance and the Green Deal, European Commission}
  • ICE BoA Euro Green Bond Index (as at end August 2025)
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