Europe's stock market outlook is becoming more optimistic and strategists are increasingly looking at profitable growth as a support for growth

On 17 July, a survey revealed that market institutions were increasing expectations of European stock markets. The Swiss Bank Group was the most significant in the July survey, and the European Stock 600 index is expected to rise by 8 per cent by the end of this year. Bank of America, Deutsche Bank and Kepler Cheuvreux have also increased their target expectations. The 18 strategists surveyed expected, on average, that the index would reach 647 points by the end of 2026. Although this level is less than 1 per cent higher than the current level, the perception is decreasing, with only five survey participants predicting a decline in the index. According to Jerry Fowler, "for now, upside risk may be greater than downward risk". Beata Manthey, Citicorp European Stock Strategy Manager, said, “We are still looking forward to the European stock market for the next 12 months and are encouraged by the recent revision of the European corporate profit expectations. The most recent increase in profit expectations is significant in terms of range, breadth and timing.” Kim Xian