Beata Manthey, head of European and global equity strategy at Citibank, said the interest in European stocks had been driven by “domestic stimulus delivery” as well as a rotation towards non-tech sectors.

Defence stocks, which soared last year, have made further gains, with Germany’s Rheinmetall up 12 per cent in 2026 and the UK’s BAE Systems rising 26 per cent.

A choice between investing in an AI bubble or a arms boom. What a world.