Finance
Barclays Lifts Stoxx 600 Index's Annual Target to 570
Published by Global Banking & Finance Review®
Posted on July 2, 2025
2 min readLast updated: January 23, 2026
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Barclays raises its STOXX 600 forecast to 570 points, citing easing trade tensions and supportive monetary policy. The EU and US are negotiating a trade deal.
Barclays Raises Year-End STOXX 600 Index Forecast to 570 Points
(Reuters) -Barclays on Wednesday raised its year-end forecast for the STOXX 600 index to 570 points, on easing trade and geo-political tensions and an accommodative monetary policy backdrop.
The British brokerage's new target for the benchmark index implies an upside of about 6% from its last close of 540.25 points. In its last revision in May, Barclays had set a target of 540.
"Uncertainties on trade and geopolitics have likely peaked, and growth/liquidity fundamentals remain broadly supportive. So we think equities will most likely continue to climb the wall of worry" in the second half of this year, Barclays said in a note.
Earlier this week, Bloomberg News reported that the European Union was open to a trade deal with the United States that would impose a universal 10% tariff on many of its exports, while also seeking U.S. commitments to reduce duties in certain key sectors.
Concerns around U.S. tariffs and their potential drag on global growth have resurfaced, with the July 9 deadline for countries to reach trade deals with Washington fast approaching.
"The EU economy is also expected to slow, but the combination of ECB cuts and Germany fiscal stimulus should boost medium-term growth in the region," the brokerage added.
The ECB, after delivering eight rate cuts since mid-2024, has recently signaled a pause in its easing cycle as inflation returns to its 2% target.
(Reporting by Joel Jose in Bengaluru; Editing by Shailesh Kuber)
Key Takeaways
- •Barclays raises STOXX 600 forecast to 570 points.
- •Easing trade and geopolitical tensions cited.
- •Monetary policy remains accommodative.
- •EU open to a trade deal with the US.
- •ECB signals pause in rate cuts as inflation stabilizes.
Frequently Asked Questions about Barclays lifts STOXX 600 index's annual target to 570
1What is Barclays' new year-end forecast for the STOXX 600 index?
Barclays has raised its year-end forecast for the STOXX 600 index to 570 points, indicating an upside of about 6% from its last close of 540.25 points.
2What factors contributed to the increase in the STOXX 600 index forecast?
The increase is attributed to easing trade and geopolitical tensions, along with a supportive monetary policy backdrop.
3How does the EU's trade stance affect the STOXX 600 index?
The EU is reportedly open to a trade deal with the US that could impose a universal 10% tariff on many exports, which has implications for global growth and market sentiment.
4What is the current state of the ECB's monetary policy?
The ECB has signaled a pause in its easing cycle after delivering eight rate cuts since mid-2024, as inflation returns to its 2% target.
5What is the expected impact of fiscal stimulus in Germany on the EU economy?
Despite a slowdown in the EU economy, the combination of ECB cuts and fiscal stimulus in Germany is expected to boost medium-term growth in the region.