In this episode:

• After months of passive outflows in the US, investors are rediscovering the European market. The Eurostoxx50 has had one of the best starts to the year in history, with broad-based gains. Macro and systematic funds, previously short on Europe, are now moderately overweight, while single-stock volatility is creating opportunities for stock pickers.
• The announcement of DeepSeek in China triggered a sell-off in the AI sector, with Nvidia losing $600 billion in a single day. The market later reacted more rationally, recognizing technological progress as positive and reaffirming the strong dominance of the US. The event highlighted the importance of diversification in AI investments.
• Earnings season is showing resilient numbers, especially in Europe, where 55% of companies have beaten expectations. The ECB has cut interest rates, while Powell remains cautious, awaiting Trump’s policy decisions. The market is pricing in at least three more rate cuts by year-end, as inflation cools down.

The start of the year confirms renewed interest in Europe, with growth prospects supported by reforms and investments. The environment remains volatile, but active investors may find opportunities by balancing risk and reward in an ever-evolving market.