STOCKS | Bank Of America Raises Year-End Target For Stoxx Europe 600 To 630, Keeps Underweight Rating

Bank of America raised its year-end target for the Stoxx Europe 600 index to 630 points, citing improving euro zone growth prospects. According to Jin10, the Wall Street brokerage said the region’s growth momentum has improved as the energy shock triggered by the Iran conflict has faded and Germany’s fiscal stimulus measures have begun to lift economic activity. Bank of America now expects the benchmark index to reach 630 points, up from its previous target of 590 points. It said the index’s current level is already more than 3% above its latest target. The firm said the euro zone is experiencing a “mini Goldilocks moment,” with economic activity rebounding while inflation pressures ease. Despite the more optimistic growth outlook, Bank of America maintained an “underweight” rating on European equities relative to global equities. Strategist Sebastian Raedler said the firm’s view on European stocks remained negative because market pricing already reflected overly ideal expectations.