Strategists Are Most Bullish on European Stocks in Eight Years

Market strategists have provided the most bullish forecast on European stocks since 2018, according to a Bloomberg survey. Strong corporate earnings and government spending are expected to offset the impact of high oil prices and rising bond yields, according to the survey which polled 16 strategists. The Stoxx Europe 600 Index is expected to finish the year at 670 points, representing a 5% gain from Wednesday's close.

Panmure Liberum retained its position as the biggest bull in the poll, predicting a 10% increase for the benchmark index by year end. The average prediction is lower than the median at 654 points. Confidence among strategists remains high, with many citing improving macro-economic data and strong earnings growth as potential catalysts for further gains.