European Leading Indicators | Tariffs fuel market volatility

Written By:
Judith Fischer, Knight Frank
1 minute to read

Here we look at the European leading indicators in the world of economics.

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Key insights:

European equity markets are relatively resilient

Equity markets have experienced notable volatility amid US tariff-related turmoil. However, the regional impacts have varied. Many Asian equity markets have seen significant declines, a trend mirrored in the US domestic market. In contrast, European markets have shown relative resilience, with the German DAX posting a 6.5% year-to-date gain.

The ECB continued to lower interest rates

As expected, the ECB cut rates by 25bps, with at least one more cut likely this year as it balances softened economic growth and evolving inflation dynamics. Lower rates should be positive for real estate, with Europe potentially benefitting from an investor focus on safe havens markets

European (excl.UK) CRE investment on track with previous years

Preliminary figures from MSCI Real Capital Analytics indicate that total CRE investment in Europe (excl. UK) was €28bn, broadly in line with the first quarters of the past two years. Key markets such as Germany, Sweden, and Italy recorded their strongest Q1 since 2022.

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