Global Investors: A Shift in Focus to Europe and China Amid U.S. Market Jitters

Investors are shifting interest from U.S. stocks to European and Chinese markets amid concerns of a possible recession in the U.S. fueled by remarks from U.S. Treasury Secretary Scott Bessent. Germany's fiscal plan boosts European stocks, while China's tech shares surge following policy changes and retail growth.

As U.S. markets grapple with uncertainty, investors are redirecting their focus to Europe and China, driven by economic concerns and recent political discourse.

Germany's new fiscal strategy, involving increased state borrowing to support defense and economic development, has fueled a significant rise in European stocks. The pan-European STOXX 600 climbed more than 7% this year, closely followed by Germany's DAX at over 15% growth.

In a parallel development, Chinese markets experience a resurgence as policy reforms and tech sector expansions drive investor confidence. Noteworthy is the Hang Seng Index's near 20% rise, attributed to strong retail sales data and an optimistic economic outlook.

(With inputs from agencies.)