According to the Zhitong Finance APP, Citigroup strategists pointed out that despite the ongoing threat of trade tariff policies from the Trump administration in the United States, investor pessimism towards European stock markets is excessive. They predict that by 2025, European stock markets are still expected to achieve nearly a 10% increase. This optimistic forecast is based on robust global economic growth, central bank interest rate cuts, and improved corporate earnings prospects, which are likely to drive the benchmark STOXX Europe 600 index up to around 570 points, while the index closed at 521.22 points on Monday.
The team led by Beata Manthey particularly emphasized that industries closely related to the economic cycle, such as technology, luxury goods, and mining, exhibit particularly attractive investment potential. Manthey suggested in the report that next year could be a good time for investors to reposition in the European stock market, as bearish positions have reached extreme levels, negative earnings momentum is reversing, and the macro backdrop of interest rate cuts and steady global economic growth may prompt investors to shift towards cyclical (especially outside the U.S.) markets.
It is noteworthy that Manthey's view on the European market has shifted from neutral in June to overweight in October, reflecting her keen insight into market dynamics. The target price set by Citigroup is quite optimistic among major institutions in Europe, second only to the predictions of Deutsche Bank strategists, who expect the benchmark index to reach 590 points by the end of next year. In contrast, Barclays and Bank of America have relatively conservative forecasts, expecting the index to reach 545 points and 500 points, respectively.
<img src="https://imageproxy.pbkrs.com/https://img.zhitongcaijing.com/image/20241210/1733834185989995.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" alt="image.png" original-src="https://imageproxy.pbkrs.com/https://img.zhitongcaijing.com/image/20241210/1733834185989995.png"/>
Earlier this year, although the European benchmark index reached an all-time high, its performance was far inferior to that of its U.S. counterparts due to heightened geopolitical risks in France and Germany. As of 2024, the STOXX 600 index has only risen about 9%, while the S&amp;P 500 index has soared by 27%. Wall Street strategists generally expect that under the protectionist policies of President Trump, the U.S. stock market will continue to perform strongly next year

Citigroup strategists predict that despite the threat of trade tariff policies, European stock markets are still expected to rise by nearly 10% by 2025. Based on global economic growth, central bank interest rate cuts, and improvements in corporate earnings, the Stoxx 600 index is expected to rise to 570 points. Investors have shown strong interest in cyclical sectors such as technology, luxury goods, and mining. Citigroup's optimistic forecast is second only to Deutsche Bank among institutions, reflecting keen insights into market dynamics

- Citigroup strategists predict that despite ongoing trade tariff threats from the Trump administration, European stock markets may see a nearly 10% increase by 2025.  
- This optimistic forecast is based on robust global economic growth, interest rate cuts, and improved corporate earnings, potentially raising the Euro Stoxx 600 index to around 570 points from its current 521.22 points.  
- The report highlights attractive investment potential in sectors closely tied to the economic cycle, such as technology, luxury goods, and mining, suggesting that 2024 could be a favorable time for investors to reposition in European markets.

Zhitong

Deutsche Bank AG

Citigroup

Skychem Technology

Baodi Mining

Barclays

Shandong Polymer

Trump Media & Tech - CW28

Tongxing

Phunware

YIWU CCC

Western Mining

Trump Media & Tech

HEYTEA

Louis Vuitton

Suochen

PRADA

ZIJIN MINING

Citigroup optimistic forecast: European stock markets rise against the trend, may increase by nearly 10% in 2025