Washington, D.C. policy decisions have been in the spotlight of late, but we think investors should not take their eyes off the results and clues coming from Q4 earnings season.

Due to structural headwinds, we downgraded European equities to Underweight in December. Yet a number of catalysts could occur in Q1 that could be well received by equity markets. We peruse the opportunities that may emerge in European equities.

In 2025, global equity markets may be able to add to the remarkable gains of the past two years. That will require economic and earnings pictures that don’t falter.