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BofA lifts STOXX 600 annual target to 530 points
Published by Global Banking & Finance Review®
Posted on June 20, 2025
2 min readLast updated: January 23, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on June 20, 2025
2 min readLast updated: January 23, 2026
BofA raises STOXX 600 target to 530, citing global growth resilience. European equities remain strong despite trade tensions.
(Reuters) -BofA Global Research on Friday raised its year-end target for the STOXX 600 index to 530 from 500 on resilience in global growth following a U.S.-China trade truce.
European equities remain close to all-time highs despite the global trade war and escalating tensions in the Israel-Iran conflict, the Wall Street brokerage said.
"The main reason for the resilience, is that these events (Israel-Iran conflict, trade war) have not yet translated into a clear-cut weakening in global growth," BofA said, maintaining its "negative" stance on the region's equities.
The brokerage's current target for the pan-European benchmark index still implies a nearly 1.1% downside to its Thursday close of 535.86.
While a trade deal between the U.S. and China as well as a benign May U.S. inflation report have brought some relief to financial markets, pressures from tariffs and escalating tensions in the Middle East are expected to weigh on global economic growth.
BofA upgraded the European mining sector to "overweight" from "marketweight", citing attractive valuations after significant underperformance, with support from a weaker dollar.
The brokerage downgraded airlines to "underweight" from "marketweight", on potential risks from higher oil prices if Middle East tensions escalate.
(Reporting by Akriti Shah and Siddarth S in Bengaluru; Editing by Tasim Zahid and Devika Syamnath)
BofA Global Research raised its year-end target for the STOXX 600 index to 530 from 500.
The resilience is attributed to the fact that the Israel-Iran conflict and the trade war have not yet led to a clear weakening in global growth.
BofA upgraded the European mining sector to 'overweight' from 'marketweight' due to attractive valuations after significant underperformance.
The current target implies a nearly 1.1% downside to its Thursday close of 535.86.
BofA downgraded airlines to 'underweight' from 'marketweight' due to potential risks from higher oil prices if tensions in the Middle East escalate.
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