In an August 11 research report, Goldman Sachs noted that European equities have significantly outperformed market perceptions, with the STOXX Europe 600 index's first-half earnings per share (EPS) year-on-year growth reaching 14%, its strongest in three years. The report raised its full-year 2026 EPS growth forecast from 10% to 15%. Goldman Sachs believes that since the beginning of 2025, the total return of the European STOXX index has surpassed the S&P 500, and European bank stocks have significantly outperformed the "US Magnificent Seven" since 2022. As market skepticism grows regarding the returns on AI capital expenditures by hyperscale tech companies, Europe's market structure, which emphasizes cash flow and does not chase AI, has become an advantage. This has attracted the strongest net capital inflows in a decade (excluding 2021), primarily driven by foreign investment.