Swiss National Bank Cuts Interest Rates to Zero

On Thursday 19th June, the SNB (Swiss National Bank) announced their benchmark interest rate was being cut by 25 basis points to zero and is now standing very close to a negative interest rate for the first time since 2022. However, the SNB has not ruled out moving the interest rate into negative territory and the Chairman, Martin Schlegel, stressed that such a move would be subject to great deliberation. The current decision has confirmed that the interest rate is the lowest against their global counterparts.

Chairman Schlegel in a radio interview said, “We are aware that negative interest rates are a challenge for many of our stakeholders in the economy. Negative rates also have negative side effects for savers, bankers, pension funds, and so on – we are very aware of that. If we were to lower rates into negative territory, then the hurdles would certainly be higher than with a normal rate cut in positive territory. When questioned about a rate cut at the next meeting on Thursday 25th September 2025, Chairman Schlegel sat on the fence stressing that officials will weigh data and forecasts at that time.

The cut in interest rates by a ¼ of 1% is the sixth consecutive cut by the SNB forced on the bank by the current strength of Swiss Franc which has caused consumer prices to drop for the first time in four years. President Schlegel was quoted as saying, “the SNB is attempting to counter lower inflationary pressure” and went on to stress “We will continue to monitor the situation closely and adjust our monetary policy if necessary. The SNB had indicated back in March of this year that monetary easing was probably finished, but the currency’s role as a safe haven from global economic turmoil forced their hand, and they have hinted that more cuts may be necessary to stop inflows of the Swiss Franc.

Once again President Trump and his tariff policy which has disrupted global trade underscores the impact it has had on Switzerland. Dramatic shifts in policy by the current administration in the United States has certainly deeply worried investors with the result the Swiss Franc has risen to its highest level against the US Dollar, whilst in Q1 of this year inflation was driven below zero for the first time since March 2021. Another option to control the Swiss Franc is intervention in the foreign exchange markets, but this brings political pressure as Donal Trump has already accused Switzerland of being currency manipulators, a statement vehemently denied by Chairman Schlegel.

There is disagreement within the financial markets with some experts suggesting that unless the situation drastically changes between now and September that the current decision to cut interest rates to zero paves the way for a further cut in September pushing interest rates into negative territory. However, countering this argument other experts have said that unless higher tariffs cause a significant downturn in the Swiss economy the SNB were likely to hold at 0.00%. Current bets on another rate cut have been factored in by money markets at 57%. However, Switzerland’s two-year bond yield, which is highly rate sensitive, remains in negative territory, is a sign that financial markets still anticipate a September cut.

Bank of England Holds Interest Rate Steady

On Thursday 19th June the BOE (Bank of England) held benchmark interest rates steady at 4.25% – 4.00% with the MPC (Monetary Policy Committee) voting 6 – 3 leaving rates on course for a potential cut at the next meeting on August 7th, 2025. Two external members Alan Taylor and Swati Dhingra plus the Deputy Governor David Ramsden preferred a quarter point reduction, however experts had already predicted a 6 to 3 vote in favour of holding rates steady. The money markets taking its lead from a more dovish vote by the MPC increased the odds on further interest rate cuts, priced in a further two ¼ of 1% cuts by June 2026. Interestingly, even before today’s announcement the financial markets had already priced in an 80% chance of a ¼% cut in August.

Governor Bailey warned that the world is in a highly unpredictable space with concerns that the current conflict between Iran (a major oil producer) and Israel could affect energy costs by sending them higher, thus negatively impacting prices by driving them higher. The BOE confirmed it is sensitive to events in the Middle East and their impact on oil prices where prices could be driven higher, which could then negatively impact the UK economy. The BOE noted that since their last meeting in May gas prices are up by 11% and oil had risen by 26%, however service inflation* an important indicator for the BOE fell in April from 5.3% to 4.7%

*Service Inflation – is a component of core inflation (excludes energy and food services) and reflects the rate at which the prices of services are increasing or decreasing in an economy. It helps economists, financial experts, and policymakers understand the underlying persistent inflationary pressures in an economy. Energy and food prices are excluded and can be volatile and subject to short-term fluctuations but are included in headline inflation.

Officials from the BOE noted that inflation is expected to edge higher in the coming months peaking at 3.7% in September from 3.4% in April. Experts have noted that the September figure is higher than the BOE’s benchmark target figure of 2%, however officials suggest that this figure will slowly come down with Chairman Andrew Bailey confirming “rates are on a downward path”. Officials also confirmed that they expect the economy to grow by 0.25% in Q2 of this year and statistics released by the ONS (Office for National Statistics) showed food prices had risen by 4.4% in the year to May2025, and overall goods prices rose by 2.0% the most since November 2023.

Analysis issued by the BOE suggest that officials and policymakers are feeling less pessimistic regarding the impact of Donald Trump’s tariffs on the UK and global economy, a change of opinion from their more pessimistic outlook last month. However, they continue to stress whilst their outlook has changed, uncertainty over trade could still negatively impact the UK economy. The MPC whilst still trying to balance a cooling economy against elevated inflation is finding their work is being complicated by the Israel/Iran conflict and the trade policies of President Donald Trump.

Federal Reserve Hold Interest Rates Steady

On Wednesday 17th June, and for the fourth straight meeting, the FOMC (Federal Open Market Committee) announced that benchmark interest rates will remain steady at 4.25% – 4.50% with policymakers voting unanimously for the hold, but also indicating that borrowing costs will probably fall between now and the end of the year. However, Federal Reserve Chairman Jerome Powell reiterated along with the FOMC statement that policymakers will wait and see how economic data evolves moving forward.

The FOMC also released a new set of economic forecasts being the first set of forecasts since President Donald Trump announced his tariff programme on April 2nd this year famously referring to them as Liberation Day. The FOMC’s forecasts show that for the rest of 2025 they expect higher unemployment, weaker growth, and higher inflation, thus by years end unemployment will be slightly up from the previous estimate to 4.5%, economic growth will be at 1.4% down from 1.7%, and inflation at 3% up from 2.7%.

Experts suggest that the Federal Reserve is in a bit of a quandary with higher inflation suggesting an increase in interest rates whilst falling growth suggests a lowering of interest rates to stimulate the economy. President Trump has persistently said the Federal Reserve should lower interest rates and even before the announcement yesterday President Trump referred to Chairman Powell as stupid. However, officials from the Federal Reserve do expect upward pressure on prices as the expanded use of tariffs by President Trump begin to weigh on economic activity.

Analysts suggest that so far the economy of the United States has proved resilient, as in recent months unemployment has held steady and inflation has risen less than expected. However, Chairman Powell has added that officials are beginning to see some effects from tariffs with more to come over the next few months but he did re-emphasise the Federal Reserve’s commitment to ensure price pressure does not become more persistent. Many experts in the financial markets have forecasted a meaningful rise in inflation but Chairman Powell countered with “the jobs market is not crying out for a rate cut” whilst adding that tariffs are an unavoidable cost increase to consumers and businesses. 

Chairman Powell’s take on tariffs is that the United States Economy has not yet seen the full effects of tariffs on prices for consumers and has confirmed the Federal Reserve will hang tight until data gives us a better idea of what’s going on. As part of his post-meeting conference with the media he said, “for the time being we are well positioned to wait to learn more about the likely course of the economy before considering any adjustments to our policies”. 

That said, experts within the financial markets have said that according to interest rate futures they see a more than 70% chance of a rate cut in September, however some economists suggest that it will take until then to at least see the impact of all of the administrations policies on immigration, spending and the impact on trade. They are therefore at odds with those in the financial markets proving that as tariffs and Donald Trump have become central to the Federal Reserve’s thinking.

Major Victory for the Crypto Arena as Senate Passes Stablecoin Bill

On Tuesday 17th June 2025, the United States Senate passed a bill (AKA The Genius Act) to create a regulatory framework for “Stablecoins”* in a defining moment for digital currencies in the crypto industry. The bill passed the Senate by a majority of 68 – 30 with a number of democrats joining most Republicans ensuring the bill was passed by a significant majority. The bill will now sit before a Republican controlled House of Representatives which will vote on its version of the bill before finally landing on the desk of President Donald Trump.

*Stablecoins – are a type of cryptocurrency designed to minimize price volatility by pegging their value to a stable asset such as a fiat currency which in this case is the US Dollar. Unlike other cryptocurrencies which historically and today can fluctuate wildly in price, stablecoins doctrine is to maintain a relatively stable value making them suitable for everyday transactions and a storage of wealth. 

Stablecoins that are pegged to the dollar will have to hold dollar-for-dollar reserves in either cash, short-term US government debt (treasuries) or similar products that are easily convertible to cash, which shall be overseen by federal or state regulators, The crypto industry as a whole has waited years for yesterday’s vote, have literally spent hundreds of millions of dollars to elect a Congress that is crypto friendly, and the industry is posed to do more of the same in the 2026 mid-term elections.

Those in the stablecoin arena are hopeful that the recent legislation will ensure stablecoins sooner or later become a mainstream form of payment. Indeed, retailers have backed this bill because it is felt that stablecoins will provide a faster and cheaper way to process transactions as opposed to traditional banking products such as credit cards. However, in the banking world, the smaller banks have issued warnings that deposits may be drained plus a reduction in access to credit. Meanwhile larger banks are mulling over whether they should issue their own stablecoins will generate profits from reserves. 

Senator Elizabeth Warren (Democrat and ranking member on Senate Banking) and a number of her colleagues argue that the bill does not go far enough to protect consumers in the event that issuers of stablecoin fail. They contend that in the event of a failure customers could well lose their money which could fuel demands for a bailout by the taxpayer, and Senator Warren went on to say the bill would “supercharge the value of Donald Trump’s corruption. 

Elsewhere in the crypto world declines in cryptocurrencies were led by Solana and Ether falling by 7% and 8% respectively, while Cardano had fallen by 8.5% (all coins had rebounded slightly by C.O.B. on Monday) all reflecting growing concern over the escalating conflict in the Middle East. The sell-off in crypto appeared to be a warning to Bitcoin holders that the cryptocurrency is a haven from turmoil as it sank along with other coins when Israel launched airstrikes against Iran at the end of last week.

Rush to File Exotic ETFs Linked to Crypto

Currently there is a rush of filings by fund firms for exotic ETFs (Exchange Traded Funds) that will be linked to will track digital artwork, cryptocurrencies, meme coins in the hope that bored retail investors will be attracted to a more speculative investment in the crypto world. Among the many recent filings by fund managers are ETFs tracking Litecoin and Cardano (these are smaller cryptocurrencies), meme coins* which also include $TRUMP**, dogecoin***, non-fungible tokens****, Pudgy Penguins*****, and companies investing in “reversed engineered” alien technology******.

*Memecoins – these are crypto currencies created to follow trends (often internet trends of cultural phenomena) employ humour and try and build a sense of community to attract users.

**$TRUMP – this is an example of a meme coin associated with the President of the United States, Donald Trump and is hosted on the Solana blockchain.

***Dogecoin – Is considered to be one of the first meme coins based on the Japanese word Kabosu (dog) which was a Shiba Inu dog.  Dogecoin morphed into an open-source, peer-to-peer digital currency and it was initially created as a light-hearted joke in the cryptocurrency space but has evolved into a significant cryptocurrency with a dedicated community. Some experts feel that dogecoin is an ALT coin (alternative coin e.g., not Bitcoin) and as such should not be considered as a meme)

****Non-Fungible Tokens – also known as NFTs are unique digital assets stored on a blockchain acting as a digital certificate and ownership for various items such as digital art, music, videos, domain names, to mention but a few.

*****Pudgy Penguins – are an example of a NFT and are a collection of 8,888 unique digital penguins launched on the Ethereum blockchain in August 2021. Each penguin is a unique digital collectible, generated from a collection of hand-drawn traits.

******Reversed Engineered Alien Technology – this technology refers to the hypothetical process of understanding and replicating extra-terrestrial technology recovered by governments and other organisations. There is apparently no verifiable evidence to support the existence of this technology but some proponents suggest reverse engineering in aerospace and the energy sector. However, Tuttle Capital (Offices in Delaware and Connecticut and has circa USD 681 Million under management) have filed for an Alien Tech” ETF, and therefore there is perhaps more to this technology than meets the eye.

Experts in the crypto arena suggest that since the elevation of Donald Trump to the White House who has also nominated Paul Atkins as Chair of the US Securities and Exchange Commission, such appointments have had a positive effect on money managers and hence the ETF filings on the aforementioned crypto’s. Whilst Donal Trump has indicated his support for the crypto market, analysts suggest that Paul Atkins is much more crypto-friendly than his predecessor Gary Gensler.

Some analysts are ruminating that some fund/asset/money managers are desperate to offer new products to a retail investor base that is becoming bored with the current offerings on display today and want something more exciting and exotic to trade. However, there are many experts who suggest a number of these new filings will have a short life as product development is often well ahead of the investor base interest.

Are Banks Using the Phrase ‘Non-Inclusive’ as an Excuse to Debank Clients?

What exactly do the words ‘Debank’ or ‘Debanking’ mean in today’s financial world? In simple terms a bank can close, without notice or recourse, an individual’s or company’s bank account because the bank may consider them to be a financial, regulatory, legal risk or a risk to their reputation. Usually, banks are required to give two months’ notice but in the cases of money laundering, associations with terrorism, illegal arms trading and drugs, accounts can be frozen then closed straight away. However, the big concern is when banks debank clients who are innocent but come under the ‘not inclusive’ banner.

What is the meaning of not inclusive or non-inclusive? These terms have become highly politicised over the years, but essentially, they mean to undermine the dignity and worth of the person or people targeted. They convey a message that the individual does not belong or is inferior, based on elements of their identity they cannot control such as ethnicity, gender, sexual orientation, race and other characteristics. However, innocent individuals devoid of any financial crime as stated above are still being debanked, and to wake up one morning to find that all your banking facilities have been taken away must be stressful in the extreme and have a massive impact on mental health wellbeing.

At the end of March 2025, the EBA (European Banking Authority) said de-risking or debanking is a major problem for the EU consumer, with ‘Unwarranted’ de-risking the third most relevant issue, with fraud and indebtedness the two most important issues. They pointed out that debanking affects the most vulnerable consumers, such as migrants, refugees and the homeless, and this group is being debanked not only in Europe but in the United Kingdom, the United States and elsewhere in the world. But there is also a group who are not homeless or migrants, but honest businessmen and individuals who are being debanked because they do meet the inclusivity that banks stand for*.

*Nigel Farage – is a member of parliament in the United Kingdom and is a right-wing MP and leader of the reform party. In 2021, the NatWest Bank Group debanked Farage for allegedly falling below account thresholds at their wholly owned private banking and wealth management subsidiary Coutts & Co. It subsequently turned out that his politics did conform to the ideals held by the bank and its directors so Farage was debanked, but after a two-year court case NatWest settled out of court and therefore the political angle was never proved.

Analysts suggest that many high-net-worth individuals and companies are targeted for debanking because their businesses or political beliefs do not conform to the inclusivity standards set by the bank or financial institution. The word inclusivity is actually masking the fact that the bank does not like the individual or company concerned, yet despite the total innocence of these people and companies they get debanked. This has been prevalent in the United States where crypto e.g. Bitcoin et al had become a challenge to traditional banks. It was alleged that senior crypto figures and companies were unfairly debanked when the Biden administration put pressure on banks to start debanking this group.

Whilst nothing can be proved, many experts feel that there is a lot of debanking going on just because the client does not fit the political or moral parameters of banks and their directors. As long as no laws have been broken these financial institutions should not be closing these accounts and remember there is no recourse, just thank you and goodbye. In 2024 the United Kingdom saw circa 407,000 accounts closed with many more being closed across Europe and the United States. The impact of such actions can devastate families and lead to depression and mental anxiety.

IntaCapital Swiss SA Geneva has total inclusive values but we are perturbed about the injustices being handed out to banking clients who have never broken any laws but are allegedly thrown out onto the streets for having incompatible views with the banks and their directors. If you have been debanked and are of a high-net-worth, we will be pleased to hear from you and look forward to helping you regain access to banking facilities.

Swiss Regulators Forcing UBS to Increase Capital by USD 26 Billion

In an attempt to defray the risks of another Credit Suisse debacle, the government of Switzerland has proposed, much to UBS’s consternation and chagrin, that UBS increase their capital requirements by up to USD 26 Billion. The UBS management has already criticised this move by the FDF (Federal Department of Finance), but despite intensive public lobbying by the bank’s officials, the FDF wants UBS to fully capitalise its foreign subsidiaries. The UBS proposal by the FDF forms only part of the department’s on-going and wide-ranging reforms to the financial sector of Switzerland.

In 2023, UBS, backed by a state sponsored rescue, took over its biggest Swiss competitor Credit Suisse, and part of that rescue now requires UBS to match 60% of the capital at their overseas/ international subsidiaries with capital at their head office or parent bank. The reasoning behind this move by the FDF, is to avoid the likelihood of another state sponsored rescue, this time, of their largest bank, which means UBS has to increase its common equity tier 1 capital by USD 26 Billion. The FTF has also said that UBS can reduce its AT1 bond* holdings by USD 8 Billion leaving a net increase in Tier 1 capital of USD 18 Billion.

*AT1 Bond Holdings – refers to the investments an individual or institution holds in Additional Tier 1 Bonds also known as contingent convertible bonds or CoCos**. AT1 bonds are a type of bank capital designed to absorb losses during a bank’s financial distress, making them a higher risk, higher yield, compared to a bank’s traditional bond.

**CoCo Bonds – are hybrid debt instruments (combines characteristics of both debt and equity) that are automatically converted into equity or written down when a pre-specified trigger point is reached which is typically a fall in a bank’s capital ratio. This mechanism helps banks recapitalise without needing to seek external equity under stressful conditions, reducing the likelihood of a taxpayer funded or government bailout.

The financial proposals by the FDF will be put out for consultation and should become law at the earliest by 2028 and UBS will be given between six to eight years to put the changes into practice. However, the government and the FTF have been locked in an open feud with UBS since April 2024, when the government first muted these changes. UBS will now have ample opportunity to lobby lawmakers and ask them to water down the current changes. One lawmaker from the Upper House said, “The real lobbying starts now and we are preparing for negotiations to last for years”.

The FDF has already added that alongside the capital reforms, it is proposing a targeted strengthening of the capital base at UBS, which will include the treatment of assets that are not sufficiently recoverable in times of crisis such as deferred tax assets. The FDF said that “regulatory treatment of such assets need to be tightened” and will result in UBS being required to add additional capital over and above of what is already required. In a note to employees seen by a major news outlet, UBS chairman said to the staff “We are disappointed by today’s announcement … we will stand our ground”.

The Debanking Crisis and How to Rebuild Financial Confidence

A new financial phenomenon has in recent years swept through the financial world and it is known as “DEBANKING”. Debanking occurs when a bank, at any time and in any place, closes a corporate, personal, or private account – or refuses to open one – without warning or providing any plausible or straightforward reason. Banking clients may have been with their bank for a short period of time or may have been with them for years, but the client can wake up one morning to find they have no banking facilities.

This means no cash or debit card, no visa card, any banking facilities will have been cancelled, they have been financially frozen out of the system, and there is nothing clients can do about it; there is no recourse. What many citizens and corporates across the globe don’t know is that debanking is not just an internal compliance issue when fraud, money laundering, terrorist funding or other criminal or illicit activity is discovered. Indeed, the innocent, law-abiding (never even has a parking ticket) individuals or entities can be kicked out without any due process; there is no appeal.

A question many in the financial industry have been asked is “When did debanking start”? The answers are somewhat fuzzy, but in essence the concept of debanking, particularly in a political or disruptive motivated context, never really had a fixed beginning date. It is a theme or phenomenon that has occurred throughout history evolving over time but has gained much traction and press awareness in recent years. Indeed, a high-profile debanking event took place in the United Kingdom when in 2021 NatWest Bank debanked a senior British political figure, Mr Nigel Farage MP* leader of the Reform Party.

*Nigel Farage – Nearly two years after NatWest Group closed his accounts at their wholly owned private wealth subsidiary Coutts & Co, the then CEO Dame Alison Rose resigned. Although the bank said the account was closed due to Mr Farage accounts falling below the required thresholds, Mr Farage obtained a document stating that the bank were at odds with his political views. The case was settled privately where the bank paid Mr Farage an out of court settlement, but political motivation in the case was never proved.

The Farage case highlighted the problems innocent individuals and entities face in today’s banking world. In the United Kingdom alone, in 2024 circa 408,000 were closed without appeal as opposed to 45,000 in 2016 – 2017. The same is happening in the United States, Europe and elsewhere in the world. The main focus on account closures by banks are se workers, (legal in the UK), migrants, refugees, those with poor financial histories, the homeless, PEP’s (Politically Exposed Persons), small business and those with links to crypto, (especially prevalent int the United States in recent years).

To this end, IntaCapital Swiss SA Geneva, will be pleased to hear from any high-net-worth individuals who have suffered the ignominy of having their banking facilities removed without any reasons given, with absolutely no chance of appeal or access to a recourse process.

The European Central Bank Cuts Interest Rates

Today the ECB (European Central Bank) for the eighth time in a year cut interest rates by 25 basis points leaving the deposit rate standing at 2%. The governing council were unanimous in their decision to cut three key interest rates with the President of the ECB Christine Lagarde saying that following the eighth reduction the ECB is coming to the end of the line with regard to interest rate reductions and their monetary policy cycle. The President told reporters “At the current level of interest rates, we believe that we are in a good position to navigate the uncertain conditions that will be coming up”.

Officials from the ECB describe inflation as “currently around” the 2% target. New quarterly projections issued by the ECB show inflation in 2026 at 1.6% which is below the current target, with the economy expected to expand by 1.1% in the same year. In another statement issued by the ECB it was said that trade uncertainty is likely to weigh on business investment and exports, however growth will be boosted later by government investment in infrastructure and defence.

President Lagarde also referred to growth skewed to the downside but was cheered by the fact that easier financing, a strong labour market and rising incomes should help firms and consumers withstand the fallout from a global environment suffering from severe volatility. She went on to say that despite a stronger euro weighing on inflation in the near term and decreasing emerging costs, inflation is expected to return to target in 2027.

There is of course the continuing problem of the Trump2 Presidency and tariffs. Currently most European exports are facing tariffs of 10% (except steel and aluminium which now has a global tariff of 50% except the United Kingdom who are paying 25%), however levies will rise to 50% should trade negotiations between the European Union and the United States remain deadlocked and no agreement is reached by July 9th 2025. However, the German Chancellor Friedrich Merz will shortly be meeting with President Trump and one of the main topics if not THE main topic will be trade, and Europe will hope something positive will come from this meeting.

The cut in interest rates had been largely priced in by traders with LSEG (London Stock Exchange Group) data showing the ¼ of 1% cut had a 90% chance of going through before the announcement was made. Financial markets have trimmed their bets on another ¼% reduction in rates as this move no longer seems certain. The economic policies of President Trump, his attacks on the Chairman of the Federal Reserve and his flip flopping on tariffs, has dented confidence in the U.S. economy, has strengthened the Euro, brought energy costs down and had a positive effect on European inflation. All eyes will be on July 9th, the set by Donald Trump for the EU and the U.S to agree a trade deal.

Trump’s Tariffs Hobble U.S. Markets Whilst European Stocks Forge Ahead

The week ending 30th May 2025 saw equities in Europe as a clear winner globally, whilst tariffs and trade wars initiated by President Trump have hampered and shackled the markets in the United States. Recent data released showed that out of the world’s ten best performing stock markets, eight can be found in Europe. Indeed, this year in US Dollar terms Germany’s DAX Index* has rallied in excess of 30% including such peripheral markets as Hungary. Poland, Greece, and Slovenia.

*The DAX Index – The DAX or its full name Deutsche Aktien index 40, is Germany’s benchmark stock market index, and reflects the performance of 40 of the largest and most liquid German companies trading on the Frankfurt Stock Exchange. It is a key indicator of the health of the German economy.

The European STOXX 600 Index* is currently beating the U.S. S&P 500 by 18% (reflected in dollar terms) which as data shows is a record, which experts advise is being powered by a stronger Euro and Germany’s strong fiscal spending plan both current and in the past. Market analysts with knowledge of this arena suggest there is more to come due to attractive valuations and resilient corporate earnings, which when compared to America’s which is being gripped by fiscal and trade debt, make Europe a safer bet.

*European STOXX 600 Index – This index is a broad measure of the European Equity Market. Based in Zug, Switzerland, it has a fixed number of components and provides extensive and diversified coverage across 17 countries and 11 industries within Europe’s developed economies, representing circa 90% of the underlying investible market.

Equity bull experts suggest that Europe is back on the investment map, with some investment managers saying that recently there has been more European interest from investors than there has been in the last decade. Bulls went on to say that this rally may well be self-feeding and if European stocks continue to rise, they will be likely to attract fresh investment from the rest of the world. Indeed, some analysts suggest that if the trend away from America continues over the next five years the European markets could expect an inflow of circa USD 1.4 Trillion (Euros 1.4 Trillion.) Analysts suggest the gains so far this year were the result of a proposal by the German government to spend hundreds of billions of Euros on defence and infrastructure with some economists suggesting that this will boost growth across the European bloc from Q2 2026.

Elsewhere, a slew of Europe’s peripheral markets have had performances that have made investors sit up. For example, Slovenia’s SBI TOP Index is, according to data released, the second-best performing stock market up 42% (in dollar terms) just behind Ghana’s benchmark the Ghana Stock Exchange GSE-CI, (tracks all the performance of all company’s trade on the Ghana Stock Exchange). Other peripheral stock exchanges that have done well are Poland’s WIG20) Index up 40% whilst the benchmarks in both Hungary and Greece are both up circa 34%.

Experts suggest that 2025 could be a good year for European Stock Markets as some professionals are already betting that European stocks will outperform their counterparts in America. President Trump’s tariffs, the loss of the country’s AAA status, looming trade wars, and the current fiscal deficit of USD 1.9 Trillion (and predicted to climb), are all factors as to why investors are turning their backs on the US markets. Whether this will last, we will have to wait and see if all of Donald Trump’s predictions come true. Meanwhile back in Europe data released show that corporate earnings are in the spotlight having risen 5.3% in Q1 2025 against predictions of a 1.5% decline, another reason to perhaps bet on Europe.