Bank giants JPMorgan Chase and Citi believe that one foreign stock market index will surpass the S&P 500 (SPX) this year, because investors are looking for alternatives to American assets.
In a new Bloomberg study involving 20 market strategists, both JPMorgan and Citi predict that the Stoxx Europe 600 Index (SXXP) will surpass the S&P 500 for the rest of 2025, driven by an improving economic outlook in the EU.
Among the analysts interviewed, JPMorgan has the highest target for SXXP, prediction That the Stoxx Europe will rise in the coming months to a peak of 580 points. At the same time, the bank predicts a decline for the S&P 500.
In the meantime, Citi expects SXXP to increase to 570 points this year as the market gets more clarity about the income of the company.
Says Citigroup -Strategist Beata Manthey,
“If we have already moved beyond the uncertainty of the peak profit, this could be the stage for extra upward and potential multiple revaluation, especially beaten cyclic sectors.”
The SXXP is a stock market index that follows the performance of the 600 largest listed companies in 17 European countries. From the end of Friday, the Stoxx Europe 600 index is traded on 545 points, an increase of approximately 7.60% years to date.
The outlook of the banks comes as a large four audit firm Ernst & Young (EY) warns that the S&P 500 is gathering without prices in the potential negative effects of rates, report Yahoo! Finance.
In an investor note, EY -headcurrent Gregory Daco says that rates will probably put pressure on households by stimulating prices. He also expects the US economy to lose a momentum in the fourth quarter of 2025 and approach “speed”, which predicts an GDP growth on an annual basis of only 0.6%.
“Equity markets have responded with unjustified optimism, with a view of the ongoing economic resistance of increased rates.”
From the end of Friday, the S&P 500 acts at 5,802 points.
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