Finance strategists: Do not expect new maximums in the European stock market
Euro Stoxx 50 index will end 2020 at 3098, which is a little lower than current levels, predicts Bloomberg bank strategists interviewed by the agency. A similar forecast for the wider Stoxx Europe 600 index is 367 points, i.e. 0.5% above the current value.
The survey participants believe that due to the large-scale financial aid program the European stock market is unlikely to re-test the lows of March, but at the same time will not reach fresh highs. It should be noted that the forecasts of strategists of leading banks show a very wide spread, and Bloomberg agency explains it by the uncertainty of the impact of the coronavirus pandemic on profits of companies and the economy as a whole.
The most bullish views are held by the Bank of America experts, who expect the Stoxx Europe 600 index to grow by 21% from current levels by the end of the year. And the main bears are the strategists of Oddo BHF, who predict the index decline by 11% from current levels.
In the last three months, the European equity market has regained more than two-thirds of its losses since the beginning of the Coronavirus Pandemic, but growth was interrupted in early June and last week was the worst week for the world stock market since March.