iShares Europe ETF (IEU) is an exchange-traded fund that provides exposure to large and mid-cap companies across developed European markets, including the UK, France, Germany, and Switzerland. This ETF offers a broad-based exposure to the European region, which has rewarded investors over recent years despite the war raging on between Russia and Ukraine.
European stocks have performed strongly in recent years due to a combination of cheaper starting valuations, strong earnings from global industrial and luxury exporters, higher exposure to banks and energy during a rising rate/inflation period, and a rotation away from expensive US tech into more cyclical markets. Like other global markets, we believe the recent weakness is a pullback within a bull market, with strong support in the $90 area tested early this week.
- We believe the IEU is looking for a low with our ultimate target for 2026 above 105, around 15% higher.
MM is cautiously bullish towards the IEU ETF around $95
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