European stock markets have shown strong performance year-to-date, with the German DAX climbing more than 9% and France’s CAC 40 up approximately 8%. In contrast, the S&P 500 has only gained 2.45%. This marks the widest margin by which European indexes have outpaced their U.S. counterparts at the beginning of a year since 2015. Investors are currently weighing the options between 'undervalued Europe' and 'growth-oriented U.S.' stocks, with European equities appearing favorable in terms of valuation, while U.S. stocks maintain stronger fundamentals. Overall, all sectors are positive year-to-date.