European Stocks May Drop 10% in Next Three Months, Goldman Says
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European stocks may drop as much as 10 percent amid concern the region’s sovereign-debt crisis will harm the economy, before recovering in the second half of 2012, according to Goldman Sachs Group Inc.
The Stoxx Europe 600 Index might decline to 225 in the next three months, Gerald Moser, Goldman Sachs’s London-based equity strategist, said at the bank’s Global Strategy conference in Zurich today. He expects the gauge to recover in the second half of the year to close at 250 to 270, a gain of as much as 20 percent from the trough. The index fell 0.6 percent to 247.97 at 3:09 p.m. in London today.