BofA, JPMorgan Say Time to Sell as Europe Stocks Face Risks
- Stoxx 600 is near high of forecast range, has downside risks
- Faltering growth and earnings, tightening policy are headwinds
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The rebound in European equities since mid-March has failed to win over strategists, who predict that the sustained campaign of central-bank interest rate hikes will stall the rally.
They are sticking to their gloomy outlook for the rest of 2023, unconvinced by a 10% advance in the Stoxx Europe 600 so far. The benchmark index is set to fall to 450 points by year-end, according to the average of 15 forecasts in a Bloomberg strategist survey, implying a drop of 4% from Friday’s close.