Market Strategists Higly Bullish on European Stock Market

Market strategist puts ambitious bets on European Stock market despite possibilities of potential lockdown amid risks posed by Omicron variant.

According to a Bloomberg’s strategist survey, on average of 17 forecasts shows Stoxx 600 Index will gain 9.3% to 506 index points by the end of 2022 relative to Thursday’s close. The forecasts translates to an annual average gain of 4% over the past 20 years and would take the index return to a new record high.

Bloomberg reported JPMorgan Chase & Co. strategist Mislav Matejka said, “we believe that the positive catalysts are not exhausted, with equities likely to advance further next year, as stagflation fears recede, from both sides,”. “The omicron variant is a wild card to this, but mostly in the near term, and is unlikely to be a game changer for the next year”, Mislav said who has a 525 target for the Stoxx 600.

The survey also shows for Euro Stoxx 50 strategist sees upside of 12% while 11% upside on DAX.