- Analytics
- News and Tools
- Market News
- European equities to avoid a substantil drop this winter to rise again in 2023 – SocGen
European equities to avoid a substantil drop this winter to rise again in 2023 – SocGen
Economists at Société Générale expect European equities to struggle this winter. However, they have better prospects for the next year and forecast STOXX 600 and EuroSTOXX 50 at 440 and 3,800, respectively.
Inflation should decelerate next year, allowing a rerating of European equities
“This winter could be volatile and choppy for the European equity market, as investors weight up the impact of higher energy prices and the risk of gas shortages and power cuts on the continent.”
“During the next two quarters, lower GDP growth should not prevent the ECB from continuing to hike. As this story is already partly priced into European equity markets and we assume a worst-case scenario could be avoided, the downside should be rather limited (single digits).”
“In our scenario, inflation should decelerate next year, helping the German 10y bond yield to stabilise from spring onwards to around 1.6% and thus allowing a rerating of the European equity market.”
“We see the STOXX 600 Index rising to 440 points (6% higher than current levels) and the EuroSTOXX 50 to 3,800 points (+7% vs the current level) by year-end 2023.”
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.
Bank transfers
