STOXX 600 down 0.7 this month, outperforming 3 SP 500 fall
European equity funds see first weekly inflow since October
Low valuations, Trump uncertainties aid European stocks

LONDON, Jan 8 Reuters Beatendown European stocks are luring investors back after a record underperformance versus Wall Street in 2024, as fears about U.S. economic shocks under incoming President Donald Trump boost the appeal of international markets.

Amundi, Europe39;s largest investor, said on Wednesday it had turned constructive on Europe because the effect of trade war fears on valuations was exaggerated.

Funds that invest in European equities have also just recorded their first weekly net inflow since October, Lipper data showed, after several big banks this week tipped the market for a 2025 turnaround.

The STOXX 600 index of bluechip European shares has lost 0.7 this month but outperformed the U.S. SP 500, which has dropped nearly 3 on fading hopes for U.S. interest rate cuts and policy uncertainty.

Barclays on Wednesday said the European market39;s riskreward profile was improving, citing emerging anxiety around Trumponomics.

Deutsche Bank and Citi this week forecast doubledigit returns for the STOXX this year, while Goldman Sachs said the market39;s lowlyvalued companies were likely takeover targets.

The STOXX 600 ended 2024 at its biggest discount to the SP on record, LSEG data showed, as investors flocked to socalled Trump trades that bet his policies will lift most U.S. assets….