European Stocks Forecast to Rise Amid Economic Optimism

European stocks are expected to rise over the coming months, driven by strong economic prospects, low positioning, and relatively low valuations. Goldman Sachs analysts forecast the Stoxx Europe 600 Index to increase by 2% to around 560 points by the end of 2025, with a 5% rise expected within the next year. JPMorgan strategist Mislav Matejka suggests that the time to invest in European stocks is approaching, with potential for European markets to outperform U.S. stocks in the next one to two months.

European stocks are expected to rise over the coming months, driven by strong economic prospects, low positioning, and relatively low valuations. Goldman Sachs analysts forecast the Stoxx Europe 600 Index to increase by 2% to around 560 points by the end of 2025, with a 5% rise expected within the next year. JPMorgan strategist Mislav Matejka suggests that the time to invest in European stocks is approaching, with potential for European markets to outperform U.S. stocks in the next one to two months.

Goldman Sachs' positive outlook is supported by several factors. The European economy is expected to grow at a steady pace, with low unemployment rates and robust consumer spending. Additionally, European stocks are currently undervalued compared to their U.S. counterparts, offering investors an opportunity for higher returns. Moreover, the European Central Bank's (ECB) accommodative monetary policy is expected to continue supporting economic growth and stock market performance.

Mislav Matejka's prediction is based on the belief that European markets are currently underpriced and that the recent geopolitical tensions and economic uncertainties have led to a temporary correction in stock prices. He argues that the time is right to invest in European stocks, as the region's fundamentals remain strong, and the market is poised for a rebound.

Investors should closely monitor the economic data and policy developments in Europe to gauge the potential impact on stock market performance. The European Central Bank's monetary policy decisions, as well as the political and economic developments in key European countries, will play a crucial role in shaping the market outlook.

References:
[1] https://www.reuters.com/world/china/global-markets-wrapup-6-2025-09-01/
[2] https://www.ainvest.com/news/outlook-therapeutics-assessing-impact-fda-rejection-downgrade-otlk-future-path-2508/