Via a note from Barclays on Friday on European equities. in brief.

Barclays cites the flow data they track, which shows most US clients have
cut exposure to Europe. Clients reason

• that the region is the most vulnerable to central bank-induced recession
• will suffer from a “weaker for
  longer China”
• “has missed the AI train”
• “Poor liquidity was another concern, which prompts clients to own
  concentrated positions in a few quality/growth/internationally geared
  mega cap EU stocks”

“The apparent cheapness of European equities does not make up for
the perceived lack of structural growth opportunities in the region,
and appetite for Value appears to be gone for good. Overall, our
impression is that we may be close to peak pessimism on Europe,”

Barclays note further that while the outlook for Europe is poor, that for the UK is even worse, saying many of their clients view the UK as a “value trap.”