Kathmandu: While President Donald Trump’s trade war continues to disrupt US financial markets, European stocks have emerged as the clear winner. As Europe’s economic outlook brightens, stock markets around the world have also performed well, Bloomberg writes.

According to data compiled by Bloomberg, eight of the world’s 10 best-performing stock markets through the first five months of this year are in Europe. The list also includes Germany’s DAX index, which has gained more than 30 percent in dollar terms. Markets such as Slovenia, Poland, Greece and Hungary are also on the list.

The European Stoxx 600 index is outperforming the US S&P 500 index by an all-time high of 18 percentage points in dollar terms. The European Stoxx 600 has been supported by Germany’s historic fiscal spending plan and a strong euro. Market analysts say Europe is becoming a safe haven investment destination due to sustainable corporate earnings and attractive valuations as concerns about trade and financial debt in the US economy increase.

Analysts also say that there is potential for more growth in the European market. If this excellent performance continues, it seems to be a sign of a recovery from a long recession for the European market. As stocks in the European continent rise, they are likely to attract new investment from around the world, say stock market optimists.

According to analysts at UBS Group AG, investors are expected to invest $ 1.4 trillion in European stock markets over the next five years as they exit American assets. On the other hand, investors in the United States are growing concerns about a renewed economic recession.

The S&P 500 index, despite a slight increase in May, is still lagging behind for the year. The index has gained only about 0.5 percent in 2025. Meanwhile, the MSCI All Country World Index, which includes countries outside the United States, has jumped 12 percent. The S&P 500 is now in 73rd place among 92 indices tracked by Bloomberg.

Some smaller markets in Europe are dominating the list of the world's best-performing markets this year. Slovenia's blue-chip SBI Top Index rose 42 percent in US dollar terms, becoming the world's second-best performing index.

Ghana's benchmark GSECI index topped the list. Poland's WIG 20 index rose 40 percent. While indices in Greece and Hungary also rose more than 34 percent.