Wall Street Institutions Predict European Stock Market Will Outperform U.S. Stocks in 2025

According to Deep Tide TechFlow, on May 20, several institutions on Wall Street predicted that the European stock market would achieve its best performance relative to the U.S. stock market in 20 years. A Bloomberg survey shows that the Stoxx Europe 600 Index is expected to close at 554 points by the end of the year.

J.P. Morgan predicts that the index could reach a maximum of 580 points, while Citigroup forecasts a 4% increase to 570 points. J.P. Morgan expects the Stoxx 600 Index to outperform the S&P 500 Index by 25 percentage points in 2025, setting a record.

A Bank of America survey shows that the net proportion of global fund managers overweighting European stocks has reached 35%, while the net allocation to U.S. stocks has fallen to the lowest level in two years.