As European indices reach new highs, a shift in leadership is taking place: large multinationals are regaining the upper hand. Driven by the spread of the AI boom, the stabilization of U.S. trade policies, and a more predictable monetary environment, they are reshaping the European stock market landscape.
In its latest letter, Dorval AM highlights the key drivers of this trend:
1. The return of international large-caps
After a period dominated by domestic stocks, global leaders are regaining investor favor. AI is acting as a catalyst for the technology sector, while healthcare is benefiting from greater clarity in the U.S. regulatory framework.
2. More accommodative monetary policies
The Fed’s recent rate cuts and the ECB’s more flexible stance are supporting risk-taking. Markets now anticipate a stabilized monetary environment, favorable for companies with significant international exposure.
3. An insightful sector rotation
Technology, healthcare, and automotive stocks are once again standing out. The EU-US trade deal—confirming 15% tariffs—is benefiting several industrial sectors, while the luxury sector is benefiting from a stabilizing euro and a wealth effect linked to the US and Chinese markets.
5 key takeaways
💡 European indices hit new records in early October.
💡 U.S. and European monetary policies emerge as the main drivers according to the Bloomberg model.
💡 The global AI boom is now spreading its effects beyond the U.S. technology sector alone.
💡 European multinationals are benefiting from a more stable business environment.
💡 The current sector rotation is boosting the attractiveness of European markets in the medium term.
A balanced positioning with Dorval Convictions
In this context, Dorval AM favors a flexible and selective approach through its Dorval Convictions fund (FR0010565457):
Adaptability: adjustable exposure from 0% to 100% to European equities depending on market conditions.
Strategic vision: allocation guided by macroeconomic analysis and sector cycles.
Risk management: constant balance between growth opportunities and prudence.
With a YTD return of +10.9% and a net exposure of 65% as of October 2, 2025, Dorval Convictions positions itself as a key tool to support investors during a phase of measured recovery in European markets.
Find the full analysis and charts in the complete Dorval AM newsletter: https://www.dorval-am.com/articles/les-multinationales-reprennent-le-flambeau-sur-la-bourse-europeenne-6-octobre-2025/
