European Equities: Defensive Strategies in a Volatile Trade Environment

Prepared by Christoph Berger and Thomas Grillenberger from Allianz Global Investors, this Q2 2025 report examines the outlook for European equities amid rising global trade tensions and recession risks.

• Market Impact: Harsh US tariffs have ended Europe's 2.5-year bull market, triggering a sharp correction and heightened recession fears​.

• Strategic Outlook: Elevated volatility is expected to persist; defensive, high-quality sectors are favored over tariff-exposed industries​.

• Valuation Perspective: Lower valuations and negative sentiment may present selective entry points for long-term investors​.

Access the full report to explore detailed sector views, valuation analyses, and investment strategies for navigating Europe's evolving market landscape.