European Stocks Expected to See Limited Growth Amid Economic Challenges

European stock markets may struggle to achieve significant gains for the remainder of the year due to the economic impact of the Iran war and the lack of popular AI concept stocks in the European market, according to a Reuters survey. According to Jin10, the survey, conducted from May 19 to 26, involved 14 analysts and indicated that the STOXX 600 index is expected to reach 645 points by the end of the year, representing an increase of approximately 2.6% from current levels. The blue-chip STOXX 50 index is also projected to rise by just over 2%. The STOXX 600 index has gained 6.1% so far this year, with nearly all of the increase occurring in the first two months of 2026, prior to the outbreak of the U.S.-Israel war against Iran. Analysts anticipate that the STOXX 600 index will continue to rise slowly in 2027. The median market expectation suggests that the index will reach 670 points by mid-2027 and 694 points by the end of 2027, marking increases of approximately 6.6% and 10.4% from current levels, respectively. Analysts also predict that the European market will continue to lag behind other markets due to the lack of popular AI-related stocks. Although European tech stocks have risen nearly 20% this year, they account for only about 10% of the STOXX 600 index.