Don’t ignore the European market, Jim Cramer says

CNBC’s Jim Cramer on Monday told investors not to write off the power of European markets, pointing out economic growth across the region.

“This continent of 750 million people, twice our market size, is now percolating,” he said. “We’re seeing company after company put up better than expected European numbers, yet no one seems to notice thanks to a combination of, I don’t know, ennui and disbelief.”

Cramer conceded that he understands why some on Wall Street don’t expect much from Europe, saying many companies tend to put up earnings misses there and “the cards seemed stacked against you” for more than a decade.

But he pointed out a number of developments in the European economy, including three rate cuts from the European Central Bank. Cramer suggested there’s been growth across the continent, especially in southern rim countries like Portugal, Italy and Greece. According to him, Europe had been “underbanked” since March of 2023 when Credit Suisse fell into crisis — but noted the success of Banco Santander‘s business, saying it “told the tale of a continent that’s waking up.” He also said investors shouldn’t ignore robust economic data out of Spain, which on Monday reported that manufacturing grew at the fastest pace in more than two years last month.

Cramer added that he was impressed by growth in European markets that tech giants Amazon and Apple reported when they posted earnings last week. He also compared Europe to China, expressing pessimism about the latter’s efforts to stimulate the economy. And according to him, American businesses could have trouble operating in China if former President Donald Trump wins the election and drastically raises tariffs.

“Sooner or later, Wall Street’s going to wake up to the fact that Europe is back,” Cramer said.

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Disclaimer The CNBC Investing Club Charitable Trust holds shares of Amazon and Apple.