European small and mid-cap stocks are about to outperform: Deutsche Bank

Deutsche Bank strategists are expecting smaller European stocks to significantly outperform their larger counterparts in the coming months, citing three key factors that could drive this growth. The bank maintains its positive outlook on the European small and mid-sized companies, despite their underperformance compared to larger companies during early 2024. An ETF tracking the MSCI large-cap index of European companies has gained nearly 11% so far this year, whereas a fund tracking the MSCI Europe Small Cap index has returned 7.4% in the same period. XXSC-DE EMUL^-IT YTD line The bank said three key catalysts could unlock