Goldman Sachs and Citigroup: The political crisis in France is unlikely to hinder the strength of the European stock market.

On August 28, Jin10 data reported that several top strategists on Wall Street indicated that the market has already priced in the risk of another government collapse in France, which is not enough to shake the momentum of European stocks, which are experiencing their strongest performance relative to U.S. stocks in nearly twenty years. Citigroup strategist Beata Manci stated, “It’s easy to call for a ‘sell Europe’ reaction due to yet another political crisis, but the fundamentals have long accounted for the pessimistic scenarios. The investment logic in Europe has always been based on Germany, which remains stable, while French assets have already priced in a certain political risk premium.” Goldman Sachs strategist Sharon Bell noted that the firm currently expects the political crisis in Paris to have no impact on growth. “This is completely within the range of market expectations; France’s vulnerabilities have always existed.” Despite the increase in tariffs from the U.S., the improvement in Europe’s long-term profit prospects has, to some extent, boosted market resilience.