Why the Middle East crisis reinforced the bull case for Europe | Portfolio Adviser

Why the Middle East crisis reinforced the bull case for Europe argues that the conflict reshaped investor thinking rather than permanently damaging European equities. The article links the Middle East war to a 12% decline in the market from a February peak, citing disruptions to oil supply feeding higher inflation and consumer pressure in sectors such as hospitality. It also notes a rebound in optimism, with the Euro Stoxx index up about 10.4% year to date, above its pre-conflict level, according to FE fundinfo data. Karen Ward of JPMorgan Asset Management said short-term damage from Iran was real but overstated, and recovery is plausible if the conflict ends. Fund managers say Europe is “rewiring” through rebuilding supply chains, energy networks, and defense. Daniel Avigad highlights Germany’s first military strategy since World War II as a sign of shifting priorities and points to ammunition as an emerging theme, with Rheinmetall cited before mentioning other opportunities such as AlzChem.