JPMorgan’s Matejka Sees European Stocks Getting Attractive Again

JPMorgan strategists, led by Mislav Matejka, are signaling renewed attractiveness in European equities, projecting a bounce back into 2026. This positive outlook is predicated on an anticipated inflection in earnings, driven by incoming fiscal stimulus and a potential resurgence in share buybacks, which have seen a recent slowdown.

Analysis

Strategists at JPMorgan Chase & Co., led by Mislav Matejka, are presenting a bullish case for European equities, suggesting that a period of consolidation may be concluding. The firm anticipates a regional stock market rebound extending into 2026, underpinned by two key factors. Primarily, they forecast an inflection point in corporate earnings, which is expected to be propelled by the economic impact of upcoming fiscal stimulus. Secondly, this anticipated improvement in earnings is projected to fuel a renewed surge in share buybacks, a metric that has remained stagnant for the past several quarters, providing a further potential catalyst for equity appreciation.

Key Decisions for Investors

• Investors might consider increasing exposure to euro-area equities in anticipation of a potential multi-year rebound, as highlighted by the JPMorgan analysis.
• Monitor announcements regarding fiscal stimulus packages in the euro-area, as their implementation is a core driver of the forecast's expected earnings inflection.
• Track the volume and announcements of corporate share buybacks in Europe, as a noticeable increase would serve as a key confirmation of the bullish thesis.