Analysts expect worst year for European business since global financial crisis

Analysts expect worst year for European business since global financial crisis

Analysts polled by Bloomberg expect the Stoxx Europe 600 to hit 406 for the year. Thus, its value will decrease by 17% compared to 2021 – this will be the worst dynamics of the index since 2008, when the global financial crisis erupted.

The Stoxx 600 index, which covers about 90% of European shares in free float, began to decline last month. Banking analysts note that European business is unlikely to be saved even by the Christmas sales season, as the mood of investors is too negatively affected by rising inflation and the tightening of the monetary policy of the central banks of European countries.

At the same time, some banks are confident that the index will drop even more. Thus, according to the Bank of America forecast, the Stoxx 600 will end the year at about 380 points. And the most pessimistic forecast came from analysts at Goldman Sachs – 360 points for the year.