Stifel analyst Nathan Jones said Tuesday that, in the firm's May leading indicators review, European indicators registered the most pronounced acceleration when compared with readings for the U.S. and emerging markets.
The report found that 3 out of 4 European indicators accelerated in May, up from 2 out of 4 in April. By contrast, U.S. indicators showed broader expansion but less momentum: 10 of 12 U.S. indicators were positive or in expansionary territory, yet only 2 of those 12 were accelerating while 10 decelerated. Emerging markets, the report stated, had 5 of 8 indicators in positive territory, with 2 accelerating and 6 decelerating.
Selected company exposures
Within Stifel's coverage universe, the firm identified two industrials with the largest European revenue exposure: ESAB Corporation, listed at $87.92 with a Buy rating, and ITT Inc., listed at $190.95 with a Buy rating. The report also highlighted MSA Safety Inc., listed at $158.94 and carrying a Hold rating, as a name with notable European exposure.
Key U.S. indicators referenced
- The ISM New Orders index rose to 56.8 in May from 54.1 in April.
- Building permits climbed 5.8% month-over-month to a 1,442,000 unit annual run rate in April.
- The 10-year treasury less 2-year treasury spread was 0.41% as of June 5, 2026, down from 0.52% in April.
European and German indicators cited
- Eurozone Manufacturing PMI was 51.6 in May, down from 52.2 in April.
- Germany's IFO Business Climate Index rose 0.5% month-over-month to 84.9 in May.
- German Economic Sentiment improved to -10.2 in May from -17.2 in April.
Stifel's May review therefore shows a divergence in momentum across regions: Europe recorded a step-up in accelerating indicators, the U.S. displayed broad expansion but more deceleration than acceleration, and emerging markets showed a mix of positive readings alongside a majority of decelerating measures. The firm called attention to specific companies in its coverage that have significant European exposure, providing investors with names to watch in the context of the region's improving momentum.