Several factors contributed to this robust performance. Notably, a significant rotation of capital from U.S. to European assets occurred, driven by investor concerns over U.S. economic policies, including new trade tariffs, and the relative attractiveness of European markets. European equities and bonds outperformed their U.S. counterparts, bolstered by improved earnings, favourable valuations, and a stronger euro.
Additionally, Germany’s announcement of a €500 billion fiscal stimulus package aimed at revitalising its economy and enhancing defense and infrastructure spending further boosted investor confidence in European assets.
Luxembourg, as Europe’s leading financial center for investment funds, with over €7.5 trillion in assets under management, continues to benefit from its stable economic environment and AAA credit rating, reinforcing its appeal to investors seeking stability amid global uncertainties.