Stock markets in Europe experience a decline, as attention continues to center around interest rates and economic growth.
European equities showed a mixed performance on Friday, with the benchmark Stoxx Europe 600 Index closing 0.2% lower, hovering near its March record. Despite the slight dip, equity strategists remain optimistic about fresh peaks before the end of the year.
The media and consumer products sectors were the biggest laggards, while bank and mining shares shone, edging higher. Among the notable movers, Stellantis NV saw an upgrade by Berenberg, propelling the automaker's shares higher.
Aumovio SE, fresh from its stock market debut, rose 1.2%. However, Kuehne Nagel International AG shares fell 9.1% following a downgrade by Deutsche Bank AG.
Investor attention will be focused on Purchasing Managers' Index readings next week in key economies such as Germany, the UK, and the US. These figures are expected to provide insights into the health of the global economy.
Looking ahead, equity strategists from Sparkassen-Kapitalmarkt anticipate European quality stocks and dividend-strong titles to be particularly attractive. They forecast the DAX index could reach between 25,000 and 26,000 points before the end of 2025, driven by factors like falling interest rates, rising government debt, and the global AI investment surge.
Meanwhile, Claudia Panseri, chief investment officer for France at UBS Wealth Management, expects stocks to remain subdued, suggesting a cautious approach to the market.
In addition, European equity funds experienced $300 million outflows in the week through Sept. 17, according to a Bank of America Corp. note that cited EPFR Global data. This could indicate a growing wariness among investors, potentially impacting market movements in the coming weeks.
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