JPMorgan: European Stocks Are Attractively Cheap After Oil Price Slump

JPMorgan says European stocks may become more attractive after the recent oil price slump and easing fears over the Strait of Hormuz crisis. The bank argues that if the Middle East conflict has peaked and oil prices continue to fall, investors could rotate back into the kind of cheaper European equities they favored before the war, when they were looking for diversification away from U.S. tech and AI-driven markets. JPMorgan strategist Karen Ward remains bullish on Europe, citing lower valuations versus the U.S. However, the article also notes that ECB officials warned the region still faces an energy-price shock that could linger for months, and they are not ruling out further rate hikes. Overall, the piece frames Europe as a potential beneficiary of lower oil prices, while acknowledging macro headwinds remain.