Gate News bot news, according to Bloomberg, Wall Street strategists say that trade and geopolitical risks will only slow the pump of European stock markets without diverting them from their course.
A survey by Bloomberg of 19 strategists shows that the Stoxx Europe 600 Index is expected to close at around 557 points by the end of this year. This means the index will further rise 3% from Wednesday's closing price, providing investors with an annual return of about 10%.
It is expected that the accommodative monetary policy in Europe and increased government spending will provide the momentum needed for the region's stock markets to overcome the risks posed by tariffs and escalating international tensions.
Citigroup strategist Beata Manthey stated: "Despite various risks, the stock market continues to show significant resilience." She pointed out that prior to the outbreak of the conflict in Israel, global stock market valuations reflected a relatively average level of geopolitical economic risk. "In the short term, this may be concerning, but in the long run, we see many structural positive factors supporting the European stock market."
Since mid-May, the European stock market has shown moderate trends, having previously experienced a V-shaped recovery that erased all losses caused by the U.S. tariff announcement in early April. In recent weeks, stock market volatility has increased due to escalating tensions in the Middle East and rising oil prices. The Stoxx Europe 600 index has fallen by 1.5% this month, with energy and utility stocks being the only sectors to pump.
Société Générale strategist Roland Caroyan stated: "Many investors we spoke with are waiting for the end of the U.S. tariff truce agreement on July 9 to better understand the situation. Looking ahead, we expect European stock markets to maintain range-bound fluctuations."
As the outlook improves, most strategists have to chase the rise in European stock markets and update the cautious price targets they set in January. The so-called "American exceptionalism" in the stock market is being challenged, and the improving economic outlook in Europe, along with huge interest rate spreads, has intensified investors' bets on the region's stock market.
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Goldman Sachs and Citigroup believe that Europe's economic advantages will continue to drive the stock market rise.
Gate News bot news, according to Bloomberg, Wall Street strategists say that trade and geopolitical risks will only slow the pump of European stock markets without diverting them from their course.
A survey by Bloomberg of 19 strategists shows that the Stoxx Europe 600 Index is expected to close at around 557 points by the end of this year. This means the index will further rise 3% from Wednesday's closing price, providing investors with an annual return of about 10%.
It is expected that the accommodative monetary policy in Europe and increased government spending will provide the momentum needed for the region's stock markets to overcome the risks posed by tariffs and escalating international tensions.
Citigroup strategist Beata Manthey stated: "Despite various risks, the stock market continues to show significant resilience." She pointed out that prior to the outbreak of the conflict in Israel, global stock market valuations reflected a relatively average level of geopolitical economic risk. "In the short term, this may be concerning, but in the long run, we see many structural positive factors supporting the European stock market."
Since mid-May, the European stock market has shown moderate trends, having previously experienced a V-shaped recovery that erased all losses caused by the U.S. tariff announcement in early April. In recent weeks, stock market volatility has increased due to escalating tensions in the Middle East and rising oil prices. The Stoxx Europe 600 index has fallen by 1.5% this month, with energy and utility stocks being the only sectors to pump.
Société Générale strategist Roland Caroyan stated: "Many investors we spoke with are waiting for the end of the U.S. tariff truce agreement on July 9 to better understand the situation. Looking ahead, we expect European stock markets to maintain range-bound fluctuations."
As the outlook improves, most strategists have to chase the rise in European stock markets and update the cautious price targets they set in January. The so-called "American exceptionalism" in the stock market is being challenged, and the improving economic outlook in Europe, along with huge interest rate spreads, has intensified investors' bets on the region's stock market.