Following the upward revision of the S&P 500 index target for 2025, Citigroup experts also shared their optimistic forecasts regarding the dynamics of European and global stocks.
Following the upward revision of the S&P 500 index target for 2025, Citigroup experts also shared their optimistic forecasts regarding the dynamics of European and global stocks.
The German DAX index, which reflects the performance of Europe’s largest economy, could lose 5.1% by the end of this year, according to the forecast of analysts polled by Reuters. That said, the index hit a record high in May, rising above 24,300.
On Tuesday, European stocks rose as defense sector shares gained after the US administration suspended plans to impose 50% tariffs on imports from the EU. In Germany, the DAX 40 closed the trading session at an all-time high, up 0.8% to 24,316.5.
European stocks rose as US President Donald Trump said he would move the imposition of 50% tariffs on EU goods to July 9 after a phone call with European Commission President Ursula von der Leyen.
European stock indices rose on Friday, May 23, as better-than-expected regional economic data improved market sentiment.
According to data reported by Bloomberg Intelligence, European companies across the majority of sectors increased sales and improved margins in the first quarter of this year. Overall earnings growth amounted to 5% year-on-year, beating the consensus forecast of a 1.5% decline.
Morgan Stanley analysts have upgraded the outlook for European banks. The experts believe EU institutions still have upside potential, even after rallying to a 17-year high. JPMorgan Chase & Co. and Goldman Sachs Group Inc. have also expressed optimism about the region’s financial sector.
According to LSEG data, European firms are expected to report an increase in earnings of 2.3% in the first three months of 2025, up from the 1.9% rise projected by analysts a week ago.
This week, Fidelity International's fund manager said she increased the share of US stocks in her portfolio, citing market optimism following the US-China trade truce.
Major European companies are facing turbulence from US tariffs. Despite the recent trade truce between the US and China, investors remain wary as uncertainty persists, Reuters reports.
European stock indexes are down on Thursday, May 15, as investors are seeking new impulses to push the market in a certain direction after excitement over the US-China trade truce has peaked.
The DAX (Deutscher Aktienindex) Index is the main stock market indicator of Germany, which reflects the performance of the largest companies of the country. It represents 40 leading German corporations listed on the Frankfurt Stock Exchange. The financial instrument is considered to be a key gauge of the economic health in the Federal Republic of Germany and the Eurozone.
Major factors that determine the value of DAX:
A rise in the DAX indicates that investors are optimistic and confident, while a fall could be a warning sign of a potential recession or crisis.
This index is used for both long-term investing and short-term trading. To forecast its dynamics accurately, it is important to take into account macroeconomic statistics, corporate reporting, and global market trends.