$65 Billion Barbell Forms as Investors Favor European Equities Over Tech

Despite the US cash markets being closed on Friday, cryptocurrency trading continued through the weekend. According to preliminary data, investors directed $13.52 billion into Europe, representing 72.6% of total global equity inflows.

This allocation mix reflects confidence in earnings, but does not indicate an unhedged risk-on position. Global investors assembled a $65.04 billion allocation barbell during the past week, with a larger portion flowing into bonds and cash than equities.

The equity portion showed a distinct European tilt, driven by robust regional profits and reduced exposure to financials. STOXX 600 earnings for the second quarter are expected to increase by 23.4%, while the euro-zone economy expanded by 0.4%.