European stock markets were bullish in the first half of the year as investors in the United States increasingly turned to European capital markets in an effort to diversify, German media reported on Monday.

According to the German news agency DPA, European stock markets have outpaced their U.S. counterparts in terms of growth, an unseen development in years.

Despite the sluggish economy, the German stock markets have grown strongly and the benchmark DAX index has soared by 16 percent since the beginning of this year. Stock exchanges in Spain and Italy also recorded double-digit growth, in contrast to the moderate growth of less than two percent in the U.S. markets.

Analysts from Munich Alliance and Deutsche Bank, cited by DPA, pointed to indications of capital shifting from the United States to Europe. They attributed this trend to investor concerns over the uncertainty sparked by erratic U.S. trade policies and the depreciation of the U.S. dollar.

European Central Bank President Christine Lagarde also noted the trend during the monetary policy press conference earlier this month, highlighting growing investor confidence in Europe.

"We perceive a serious momentum to improve, to change, to simplify, to streamline, and to encourage and ... welcome capital into Europe," Lagarde said.