Citi’s Manthey Sees Europe Stocks Rising Almost 10% by End-2025
- Stoxx 600 gauge could hit 570 points by end of next year
- US trade tensions loom, but earnings, rate cuts will help
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Investors are too bearish on European equities, which could end 2025 up almost 10%, even as the threat of US trade tariffs under Donald Trump remains, Citigroup Inc. strategists said.
Solid global growth, lower central bank interest rates and an improving earnings outlook for companies will help lift the benchmark Stoxx Europe 600 Index to around 570 points, according to a team led by Beata Manthey. The index closed at 521.22 points on Monday. Sectors linked to the economic cycle, such as technology, luxury goods and miners, look particularly appealing, the strategists said.