According to Citigroup’s Earnings Revision Indices, Eurozone earnings are far outpacing the rest of the world, and equity prices are gaining on a relative basis as well. Year-to-date through April 12th, Eurozone shares still trail the S&P 500 total return in US dollar terms 7.2% to 10.2%. Equity investors may be signaling that even in the midst of reimplemented economic shutdowns and virus spikes, the worst may be over on the Continent and more prosperous conditions are on the horizon. There are also reasons to be optimistic about the region’s stocks — they trade at favorable valuations compared to US equities and the ECB is continuing to be highly accommodative making fixed income alternatives unattractive. If Eurozone equities can continue to rally and broaden the global advance of stocks it would likely provide a boost of confidence for investors worldwide. [chart courtesy Bloomberg LP, Citigroup © 2021]