Institution: Market Strategists Unfazed by Middle East Conflict, Still Betting on European Stock Market Rebound

March 23 — A survey of institutional investors shows market strategists are bullish on European equities despite rising inflation concerns tied to the Iran conflict, expecting the region’s stocks to hit new all-time highs. The median forecast from 16 analysts calls for the Euro Stoxx 600 to rise ~11% from last Friday’s close to 635 points by year-end. Strategists view the conflict and oil price surge as temporary factors that won’t derail the European economy’s accelerated growth. Surveyed strategists have not cut their target levels for the benchmark index; UBS and Dekabank even raised theirs slightly. Dekabank, alongside HSBC, are the most bullish with a 670-point target — implying 17% upside. The two most bearish strategists, from TFS Derivatives and Bank of America (BofA), see ~2% downside risk. (Source: FX678)