Markets are shifting — and Europe is taking center stage. European shares have soared ahead of U.S. stocks by nearly 25% this year, reversing 25 years of lagging performance. But despite this surge, they remain priced at a 40% discount to U.S. valuations. The outperformance spans every sector, with heavyweight financials and industrials buoyed by demand from emerging and intra-European markets, offering a cushion against U.S. trade frictions. How do MSCI indexes reflect Europe’s market shifts?