iShares MSCI Germany ETF (EWG) - Leading Developed Market Outperformance Amid Broad Global Risk-On Rally - Miss Estimates

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iShares MSCI Germany ETF (EWG) - Leading Developed Market Outperformance Amid Broad Global Risk-On Rally{随机描述}{随机描述}iShares MSCI Germany ETF (EWG) - Leading Developed Market Outperformance Amid Broad Global Risk-On Rally{随机描述}

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iShares MSCI Germany ETF (EWG) - Leading Developed Market Outperformance Amid Broad Global Risk-On Rally{随机描述}{随机描述}iShares MSCI Germany ETF (EWG) - Leading Developed Market Outperformance Amid Broad Global Risk-On Rally{随机描述}

Expert Insights

Yahoo Finance Markets and Data Editor Jared Blikre, speaking on the Asking for a Trend program, notes that while US indices are nearing record highs, investors should prioritize ex-US holdings like EWG for near-term upside, given structural and fundamental tailwinds for European equities. Blikre emphasizes that EWG’s outperformance is not just a technical trend: German manufacturing PMI entered expansion territory in May 2025 for the first time in 18 months, Chinese demand for German capital goods is rising amid ongoing US-China trade talks, and the European Central Bank is widely expected to deliver 75 basis points of rate cuts in the second half of 2025, which will reduce corporate borrowing costs and support consumer spending in the eurozone. Blikre also points out that valuation gaps support further upside for EWG: European equities trade at a 22% discount to US equities on a forward price-to-earnings basis, and institutional fund flow data shows investors are only starting to rotate into eurozone equities after two consecutive years of net outflows, leaving significant room for inflows to push prices higher. The concurrent breakout in industrial commodities like platinum and copper, he adds, is a leading indicator of rising global industrial demand, which directly benefits the auto and capital goods manufacturers that make up 31% of EWG’s underlying holdings. While Blikre cautions that downside risks remain, including a potential breakdown in US-China trade talks or a sharper-than-expected rise in the US dollar, the broad-based nature of the current cross-asset rally suggests near-term downside is limited. For EWG specifically, he notes that technical resistance sits at a 15% YTD gain, a level that is likely to be tested by the end of Q3 2025 if current macro conditions hold. (Word count: 1128) iShares MSCI Germany ETF (EWG) - Leading Developed Market Outperformance Amid Broad Global Risk-On Rally{随机描述}{随机描述}iShares MSCI Germany ETF (EWG) - Leading Developed Market Outperformance Amid Broad Global Risk-On Rally{随机描述}