Investment IQ Market Share Analysis for July 2026

In a year riddled with uncertainty, European investors had a productive 2025, with the Morningstar Europe Index outperforming returns from the previous two years. There were notable differences between countries, with the Spanish market the most profitable and the French the weakest performer.  Individual European stock markets started the year undervalued, and only a handful finished the year with a price/fair-value ratio below 1. The Morningstar Europe Index ended the year more expensive than the Morningstar US Market Index, as rising fair values for several large US companies pushed down the overall valuation of the US market. Across Europe, financial services and utilities were the most expensive in terms of valuation, with real estate one of the cheapest. Take a closer look at the valuations across European stock markets and sectors, and the potential investment opportunities within them.