Barclays: Monetary Policy Divergence Benefits U.S. Stock Market

According to a report by analysts at Barclays on March 26, as reported by Jinse Finance, the divergence in monetary policy operational space and other factors mean that U.S. monetary policy continues to provide significantly stronger support for risk assets compared to Europe. The analysts stated: "In terms of monetary policy, the contrast is clear: although Europe is more heavily impacted by the oil shock, the market still reflects expectations of further tightening, whereas the Federal Reserve has greater room to overlook recent energy-driven inflation and leans toward easing policy rather than resuming rate hikes." They noted that this policy asymmetry has widened the gap between U.S. and European stock markets. "The U.S. continues to offer a clearer mix, including double-digit earnings growth, non-cyclical AI-driven capital expenditures, margin support, and policy flexibility, which provides reasons to remain optimistic about the performance of U.S. stocks relative to European stocks."