Goldman Sachs has lowered its 12-month forecast for Europe’s STOXX 600 index, citing weaker economic growth, higher tariffs, and global trade disruptions.
\ud83d\udcc9 Revised STOXX 600 Price Targets:
3-Month: 510 (from 560) → -6% return
6-Month: 530 (from 570) → -2% return
12-Month: 570 (from 580) → 5% return
\ud83d\udd3b Earnings Growth Outlook Trimmed
2025 EPS Growth: 2% (previously 4%)
2026 EPS Growth: 4% (previously 6%)
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.
\ud83d\udea8 Trade War Risks Intensify
US to impose 15% reciprocal tariffs on all trading partners (previously expected at 10%).
EU accounts for ~15% of US imports, with machinery, pharmaceuticals, and chemicals set to suffer.
\ud83d\udcc9 Weaker Global Growth
Goldman Sachs cuts US Q4 2025 GDP forecast to 1% (from 1.5%).
Tariffs could slow European growth, hurting corporate earnings.
\ud83d\udcca Key APIs to Monitor Market Trends:
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.
\ud83d\udd38 Will European stocks rebound, or is further downside ahead?
\ud83d\udd38 How will tariff escalations impact earnings beyond 2025?
\ud83d\udd38 Could Europe’s central banks step in to offset economic headwinds?
\ud83d\udca1 Stay informed as STOXX 600 reacts to shifting economic conditions!
