Euro Stoxx 50 surpasses its historical record: a technical signal supported by attractive valuations for European equities.
The Euro Stoxx 50 is the benchmark index for major companies in the Eurozone. Created in 1998, it comprises the 50 largest market capitalizations in the region, including LVMH, TotalEnergies, Siemens, SAP, Allianz, and ASML. It therefore reflects the stock market performance of the largest European companies by market cap across all sectors, and the Euro Stoxx 50 futures contract is the most traded by European institutional managers.
For over twenty years, the index remained in a broad consolidation phase. After reaching a historical peak in March 2000, around 5,525 points during the dot-com bubble, it never exceeded this level. This price zone represented an important technical resistance, marking the upper limit of a long stagnation cycle.
In October 2025, the Euro Stoxx 50 surpassed this historical threshold, rising above 5,600 points. Technically, this breakout validates the exit from a long-term lateral structure. In chart analysis, breaking above such an old resistance is often interpreted as a bullish signal, suggesting a sustainable improvement in investor sentiment towards European markets.
This development occurs in a context of still moderate valuations for European equities. The CAPE ratio (Shiller P/E), which compares stock prices to the ten-year average of earnings, shows a marked gap with the United States. Europe’s CAPE is currently around 23, while the US CAPE is around 40, near its all-time high.
In other words, European equities trade at lower earnings multiples than US equities. This reflects more cautious valuation in Europe, despite a gradual improvement in margins and profitability of Eurozone companies.
The chart below is sourced from Barclays:
Investors therefore pay much less for each euro of earnings in Europe than for each dollar of earnings in the US. This undervaluation provides a catch-up potential: if confidence returns, international investment flows could redirect towards the Old Continent, supporting European market gains.
Thus, the break of the Euro Stoxx 50 all-time high occurs in an environment where fundamentals remain relatively balanced. This technical signal does not guarantee a sustained bullish trend, but it confirms renewed interest in European markets, supported by still reasonable valuations relative to US standards.
DISCLAIMER:
This content is intended for individuals who are familiar with financial markets and instruments and is for information purposes only. The presented idea (including market commentary, market data and observations) is not a work product of any research department of Swissquote or its affiliates. This material is intended to highlight market action and does not constitute investment, legal or tax advice. If you are a retail investor or lack experience in trading complex financial products, it is advisable to seek professional advice from licensed advisor before making any financial decisions.
This content is not intended to manipulate the market or encourage any specific financial behavior.
Swissquote makes no representation or warranty as to the quality, completeness, accuracy, comprehensiveness or non-infringement of such content. The views expressed are those of the consultant and are provided for educational purposes only. Any information provided relating to a product or market should not be construed as recommending an investment strategy or transaction. Past performance is not a guarantee of future results.
Swissquote and its employees and representatives shall in no event be held liable for any damages or losses arising directly or indirectly from decisions made on the basis of this content.
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CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. The vast majority of retail client accounts suffer capital losses when trading in CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Digital Assets are unregulated in most countries and consumer protection rules may not apply. As highly volatile speculative investments, Digital Assets are not suitable for investors without a high-risk tolerance. Make sure you understand each Digital Asset before you trade.
Cryptocurrencies are not considered legal tender in some jurisdictions and are subject to regulatory uncertainties.
The use of Internet-based systems can involve high risks, including, but not limited to, fraud, cyber-attacks, network and communication failures, as well as identity theft and phishing attacks related to crypto-assets.
The Euro Stoxx 50 is the benchmark index for major companies in the Eurozone. Created in 1998, it comprises the 50 largest market capitalizations in the region, including LVMH, TotalEnergies, Siemens, SAP, Allianz, and ASML. It therefore reflects the stock market performance of the largest European companies by market cap across all sectors, and the Euro Stoxx 50 futures contract is the most traded by European institutional managers.
For over twenty years, the index remained in a broad consolidation phase. After reaching a historical peak in March 2000, around 5,525 points during the dot-com bubble, it never exceeded this level. This price zone represented an important technical resistance, marking the upper limit of a long stagnation cycle.
In October 2025, the Euro Stoxx 50 surpassed this historical threshold, rising above 5,600 points. Technically, this breakout validates the exit from a long-term lateral structure. In chart analysis, breaking above such an old resistance is often interpreted as a bullish signal, suggesting a sustainable improvement in investor sentiment towards European markets.
This development occurs in a context of still moderate valuations for European equities. The CAPE ratio (Shiller P/E), which compares stock prices to the ten-year average of earnings, shows a marked gap with the United States. Europe’s CAPE is currently around 23, while the US CAPE is around 40, near its all-time high.
In other words, European equities trade at lower earnings multiples than US equities. This reflects more cautious valuation in Europe, despite a gradual improvement in margins and profitability of Eurozone companies.
The chart below is sourced from Barclays:
Investors therefore pay much less for each euro of earnings in Europe than for each dollar of earnings in the US. This undervaluation provides a catch-up potential: if confidence returns, international investment flows could redirect towards the Old Continent, supporting European market gains.
Thus, the break of the Euro Stoxx 50 all-time high occurs in an environment where fundamentals remain relatively balanced. This technical signal does not guarantee a sustained bullish trend, but it confirms renewed interest in European markets, supported by still reasonable valuations relative to US standards.
DISCLAIMER:
This content is intended for individuals who are familiar with financial markets and instruments and is for information purposes only. The presented idea (including market commentary, market data and observations) is not a work product of any research department of Swissquote or its affiliates. This material is intended to highlight market action and does not constitute investment, legal or tax advice. If you are a retail investor or lack experience in trading complex financial products, it is advisable to seek professional advice from licensed advisor before making any financial decisions.
This content is not intended to manipulate the market or encourage any specific financial behavior.
Swissquote makes no representation or warranty as to the quality, completeness, accuracy, comprehensiveness or non-infringement of such content. The views expressed are those of the consultant and are provided for educational purposes only. Any information provided relating to a product or market should not be construed as recommending an investment strategy or transaction. Past performance is not a guarantee of future results.
Swissquote and its employees and representatives shall in no event be held liable for any damages or losses arising directly or indirectly from decisions made on the basis of this content.
The use of any third-party brands or trademarks is for information only and does not imply endorsement by Swissquote, or that the trademark owner has authorised Swissquote to promote its products or services.
Swissquote is the marketing brand for the activities of Swissquote Bank Ltd (Switzerland) regulated by FINMA, Swissquote Capital Markets Limited regulated by CySEC (Cyprus), Swissquote Bank Europe SA (Luxembourg) regulated by the CSSF, Swissquote Ltd (UK) regulated by the FCA, Swissquote Financial Services (Malta) Ltd regulated by the Malta Financial Services Authority, Swissquote MEA Ltd. (UAE) regulated by the Dubai Financial Services Authority, Swissquote Pte Ltd (Singapore) regulated by the Monetary Authority of Singapore, Swissquote Asia Limited (Hong Kong) licensed by the Hong Kong Securities and Futures Commission (SFC) and Swissquote South Africa (Pty) Ltd supervised by the FSCA.
Products and services of Swissquote are only intended for those permitted to receive them under local law.
All investments carry a degree of risk. The risk of loss in trading or holding financial instruments can be substantial. The value of financial instruments, including but not limited to stocks, bonds, cryptocurrencies, and other assets, can fluctuate both upwards and downwards. There is a significant risk of financial loss when buying, selling, holding, staking, or investing in these instruments. SQBE makes no recommendations regarding any specific investment, transaction, or the use of any particular investment strategy.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. The vast majority of retail client accounts suffer capital losses when trading in CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Digital Assets are unregulated in most countries and consumer protection rules may not apply. As highly volatile speculative investments, Digital Assets are not suitable for investors without a high-risk tolerance. Make sure you understand each Digital Asset before you trade.
Cryptocurrencies are not considered legal tender in some jurisdictions and are subject to regulatory uncertainties.
The use of Internet-based systems can involve high risks, including, but not limited to, fraud, cyber-attacks, network and communication failures, as well as identity theft and phishing attacks related to crypto-assets.
This content is written by Vincent Ganne for Swissquote.
This content is intended for individuals who are familiar with financial markets and instruments and is for information purposes only and does not constitute investment, legal or tax advice.
This content is intended for individuals who are familiar with financial markets and instruments and is for information purposes only and does not constitute investment, legal or tax advice.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
This content is written by Vincent Ganne for Swissquote.
This content is intended for individuals who are familiar with financial markets and instruments and is for information purposes only and does not constitute investment, legal or tax advice.
This content is intended for individuals who are familiar with financial markets and instruments and is for information purposes only and does not constitute investment, legal or tax advice.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.