Strategists Most Bullish on European Stocks Since 2018
Market strategists are showing their highest level of optimism about European stocks since September 2018. A Bloomberg survey found that the median target for the Stoxx Europe 600 Index is 670 points, implying a potential gain of around 5% from recent levels. This bullish outlook comes despite rising energy prices and bond yields, as strong corporate earnings and government spending are seen offsetting these pressures. The survey highlights Panmure Liberum as the most optimistic firm with a target suggesting a 10% rise in the index by year-end. Deka Bank also raised its forecast while no downgrades were reported. However, Societe Generale SA remains bearish with an unchanged projection of 600 points. Analysts like HSBC's Duncan Toms point to improving macroeconomic data and strong earnings as key drivers for potential gains in the region. Despite this optimism, European equities have faced recent declines due to rising oil prices linked to ongoing geopolitical tensions in Iran. The Stoxx Europe 600 has dropped nearly 3% from its August peak amid concerns over energy costs and inflation expectations.
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Topics: bond yields earnings growth energy prices European stocks