.jpg)
1 hour ago
3
![kne2y36th)y01e]qb)ghzu72_media_dl_1.png](https://smartcdn.gprod.postmedia.digital/financialpost/wp-content/uploads/2026/05/euro-area-stocks-are-major-laggards-investors-focus-on-tech.jpg?quality=90&strip=all&w=288&h=216&sig=KjmoJqMbyjYpDJ27KnK82A)
Article content
(Bloomberg) — Euro-zone stocks look attractive after the recent pullback, according to BlackRock Inc’s Thomas Becker, who argues that policymakers may use the current energy crisis to drive long-awaited fiscal investment.
THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY
Subscribe now to read the latest news in your city and across Canada.
- Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.
- Daily content from Financial Times, the world's leading global business publication.
- Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.
- National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.
- Daily puzzles, including the New York Times Crossword.
SUBSCRIBE TO UNLOCK MORE ARTICLES
Subscribe now to read the latest news in your city and across Canada.
- Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.
- Daily content from Financial Times, the world's leading global business publication.
- Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.
- National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.
- Daily puzzles, including the New York Times Crossword.
REGISTER / SIGN IN TO UNLOCK MORE ARTICLES
Create an account or sign in to continue with your reading experience.
- Access articles from across Canada with one account.
- Share your thoughts and join the conversation in the comments.
- Enjoy additional articles per month.
- Get email updates from your favourite authors.
THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.
Create an account or sign in to continue with your reading experience.
- Access articles from across Canada with one account
- Share your thoughts and join the conversation in the comments
- Enjoy additional articles per month
- Get email updates from your favourite authors
Sign In or Create an Account
or
Article content
Despite a strong start to the year, European equities have sharply trailed the rest of the world since the start of the Iran war.
Article content
Article content
The Euro Stoxx 50 Index has fallen 3.8% since the beginning of March, while the S&P 500 and the KOSPI are up roughly 8% and 38%, respectively. Europe is more exposed to the energy shock than the US, while also lacking the tailwind from AI investment that is benefiting both US and Asian markets.
Article content
Article content
Becker, who co-manages BlackRock’s $5.2 billion Tactical Opportunities Fund, said this divergence in performance creates an opportunity to shift positioning and pick up cheaper euro-zone stocks that are likely to benefit from a fiscal tailwind.
Article content
By signing up you consent to receive the above newsletter from Postmedia Network Inc.
Article content
He said BlackRock has been taking profits on its overweight position in Asian semiconductor stocks, including those in Taiwan, South Korea and Japan, and recycling these gains into French equities, which Becker described as “attractively priced.”
Article content
“If you look at the underperformance of the CAC over the last one, three years, it’s pretty material. It’s a pretty cyclically exposed index. It’s got some big energy producers, so we think there’s kind of a bottom there — so, darkest before the dawn,” he said in a Bloomberg TV interview.
Article content
The investment case for the euro zone rests on expectations that policymakers will use the energy security crisis to drive productivity-enhancing investment. However, he acknowledged Europe faces a structural challenge in artificial intelligence development, saying electricity costs can be three times higher than elsewhere, making data center economics difficult.
Article content
Advertisement 1
English (US)