Outlook on Europe: July 2023

Outlook — Lazard Asset Management

July 10, 2023


Lazard's Outlook series provides a forward-looking view, over the short, medium, and/or long term, of asset classes, sectors, regions, or countries from the view of Lazard Asset Management. In this edition, LAM portfolio managers share their outlook for Europe in Q3 2023.


  • European equities performed solidly over the first half of 2023 but may struggle over the near term as the effects of higher rates begin to bite.

  • Although the region faces major economic headwinds, earnings resilience and low absolute and relative valuations mean European stocks arguably look relatively better placed to withstand a potential global slowdown.

  • Heavily inverted European and U.K. yield curves continue to point to a recession in both the eurozone and the U.K.

  • Higher bond yields mean European fixed-income investors can pick up attractive yields for modest risk, but we suggest steering clear of riskier high-yield debt at this time.

Click here to read our Outlook on Europe for Q3 2023.

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