European stock markets began 2025 with impressive gains, outperforming their Wall Street counterparts, largely due to erratic US policymaking and Germany’s significant fiscal reforms. However, recent trends suggest that U.S. markets have caught up to, if not surpassed, European equities. Investors should remember the strength of the euro as future shifts in market dynamics develop. Understanding the interplay of geopolitical events and economic policies will help investors make informed choices moving forward.