European stock markets are dominating the world market as a result of the US trade war backfiring.

Among the top 10 best-performing stock markets globally, 8 are located in Europe, with Germany's DAX index rising over 30% when priced in dollars. Peripheral markets such as Slovenia, Poland, Greece, and Hungary also performed well. Driven by Germany's fiscal spending plans and a stronger euro, the pan-European STOXX 600 index outperformed the S&P 500 index by a record 18 percentage points when priced in dollars. Market participants expect that European stock markets will continue to rise due to the resilience of corporate earnings and attractive valuations. Compared to the US, European stock markets are seen as a safer investment choice. Driven by US trade issues and concerns over fiscal debt, along with expectations of further economic growth in Europe, investors are shifting from US assets to European assets.