Goldman Sachs' analysts have lifted their 2024 forecast for the European STOXX 600 index to 500
GS cite their expectation of a boost from lower European Central Bank interest rates:
and say that the index will rise despite weaker growth expected and market concern of capex and China.
- "We find that lower inflation combined with lower rates is typically associated with modestly higher valuations,"
- "On average, since 1973 European equities have delivered 7% real per annum price returns in an environment of 1-3% inflation and falling."
