Goldman Sachs has lowered its 12-month forecast for Europe’s STOXX 600 index, citing weaker economic growth, higher tariffs, and global trade disruptions.
Key Forecast Revisions
📉 Revised STOXX 600 Price Targets:
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3-Month: 510 (from 560) → -6% return
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6-Month: 530 (from 570) → -2% return
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12-Month: 570 (from 580) → 5% return
🔻 Earnings Growth Outlook Trimmed
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2025 EPS Growth: 2% (previously 4%)
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2026 EPS Growth: 4% (previously 6%)
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Below consensus estimates of 6% (2025) and 11% (2026)
Consensus expectations for 2025 EPS growth have already fallen from 8% earlier this year, reflecting a broader downward earnings trend.
Why the Downgrade?
🚨 Trade War Risks Intensify
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US to impose 15% reciprocal tariffs on all trading partners (previously expected at 10%).
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EU accounts for ~15% of US imports, with machinery, pharmaceuticals, and chemicals set to suffer.
📉 Weaker Global Growth
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Goldman Sachs cuts US Q4 2025 GDP forecast to 1% (from 1.5%).
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Tariffs could slow European growth, hurting corporate earnings.
Tracking STOXX 600 & Market Risks
📊 Key APIs to Monitor Market Trends:
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Sector P/E Ratio API
Assess how valuation shifts impact key European sectors like manufacturing, pharma, and chemicals. -
Earnings Historical API
Track European earnings trends and compare them with market expectations.
What’s Next for European Markets?
🔸 Will European stocks rebound, or is further downside ahead?
🔸 How will tariff escalations impact earnings beyond 2025?
🔸 Could Europe’s central banks step in to offset economic headwinds?
💡 Stay informed as STOXX 600 reacts to shifting economic conditions!
