Turbulence created by US tariffs is continuing to be a boon for European investment, with retail investors flocking to the continent, writes Susannah Streeter in today’s Notebook

Retail investors flock to Europe

Many of us will have put away the suitcases and passports, ready for autumn to descend, with our continental getaways becoming a distant memory. But, as far as an investment destination is concerned, Europe is in demand. Retail investors have been flocking to European shores, with inflows into funds focused on the region rising throughout 2025 following last year’s outflows.

The turbulence induced by US tariff policy is also pushing institutional investors to seek more opportunity this side of the Atlantic. European stocks are still trading at a discount on a historic basis and, although concerns linger about economic growth and political risks, mega-trends unfolding put the region firmly on the map of opportunity.

Defence spending is rising rapidly across the continent, supporting growth across military supply chains, while the decarbonisation push offers prospects for utilities and clean energy companies. It’s clear there’s a shift in sentiment from the US underway, amid concerns about long-term outlook. This isn’t surprising given the latest shaky American jobs market snapshot, and the lofty valuations tech giants have reached.

But, just like searching for a seat on a........

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