{"id":311885,"date":"2025-10-17T22:58:16","date_gmt":"2025-10-17T22:58:16","guid":{"rendered":"https:\/\/www.europesays.com\/us\/311885\/"},"modified":"2025-10-17T22:58:16","modified_gmt":"2025-10-17T22:58:16","slug":"is-europes-market-about-to-break-out-or-break-down","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/us\/311885\/","title":{"rendered":"Is Europe’s Market About to Break Out — or Break Down?"},"content":{"rendered":"

<\/p>\n

This article first appeared on GuruFocus<\/a>.<\/p>\n

European stocks are grinding<\/a> through a year of hesitation. A Bloomberg survey of 18 strategists projects the Stoxx Europe 600 Index to end 2025 near 560barely a percent below current levelswith forecasts ranging from Societe Generale’s (SCGLY<\/a>) cautious 530 to Citigroup’s (NYSE:C<\/a>) more neutral 570. Citi strategist Beata Manthey said recent volatility from China and the latest earnings season could continue to test sentiment, though she sees stronger momentum emerging by mid-2026 as earnings delivery improves. The message: investors may need patience before Europe finds its next real leg higher.<\/p>\n

The continent’s equity markets have largely sat out the global tech boom. While the Stoxx 600 finally reached a record high this month, its gains remain modest versus the S&P 500 (SPY<\/a>). Trade friction between Washington and Beijing has reignited macro worries, pressuring Europe’s export-driven industries from automakers to miners. Bloomberg Intelligence expects a mild earnings pullback in 2025 before an 11% rebound in 2026. Yet a stabilizing political backdrop in France and investor positioning that’s far from overstretched have kept the floor intactat least for now.<\/p>\n

Even so, the fear of missing out is creeping back in. A Bank of America survey showed many fund managers are hesitant to trim European exposure, worried they could miss a potential rally into year-end. JPMorgan’s Mislav Matejka upgraded eurozone equities this month with a 580 target, while Barclays strategist Emmanuel Cau sees the index steady at 570 as valuations reset. UBS remains the most bullish at 600, implying a 6% gain, while Societe Generale’s Roland Kaloyan stays defensive with a 530 view, citing lingering geopolitical and earnings pressures. The debate is still openbut if history repeats, the final quarter could again surprise on the upside.<\/p>\n","protected":false},"excerpt":{"rendered":"This article first appeared on GuruFocus. European stocks are grinding through a year of hesitation. A Bloomberg survey…\n","protected":false},"author":3,"featured_media":311886,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[13],"tags":[157329,3638,64,20855,440,17970,135,148458,47297,67,132,68],"class_list":{"0":"post-311885","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-markets","8":"tag-beata-manthey","9":"tag-bloomberg","10":"tag-business","11":"tag-citigroup","12":"tag-europe","13":"tag-gurufocus","14":"tag-markets","15":"tag-societe-generale","16":"tag-stoxx-europe-600","17":"tag-united-states","18":"tag-unitedstates","19":"tag-us"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@us\/115391987918976517","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/311885","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/comments?post=311885"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/311885\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media\/311886"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media?parent=311885"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/categories?post=311885"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/tags?post=311885"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}