European stocks’ quest to outshine US markets is fading amid slowdown

European stocks initially appeared to be among the biggest beneficiaries of the shift away from tech after underwhelming quarterly reports by some members of the Magnificent Seven such as Amazon and Google-owner Alphabet. Picture: PA

The promise of European stocks gaining an edge over their US counterparts is fading after a brief spell of outperformance, as concerns of an economic slowdown weigh on the outlook for earnings.

Where Europe stood to gain from a shift away from big tech stocks, investors are instead turning to undervalued sectors of the US market.