According to Jinshi, analyst Sagarika Jaisinghani said that the prospect of European stocks outperforming the US stock market is fading rapidly due to concerns about economic slowdown and political stability. The European Stoxx 600 index is close to its all-time high, but it underperformed the US benchmark index in August. Although European markets are expected to benefit from large technology stocks, investors have turned to undervalued sectors of US stocks due to signs of economic recovery and expectations of interest rate cuts by the Federal Reserve. Germany's GDP shrank in the second quarter, the main industrial sectors were in a slump, and the decline in demand for industries such as luxury goods and automakers dragged down corporate profits. Data shows that analysts' expectations for profits in the Stoxx 600 index within 12 months have remained relatively flat since June, while expectations for the S&P 500 index have continued to rise.