Goldman Sachs has lowered its 12-month forecast for Europe’s STOXX 600 index, citing weaker economic growth, higher tariffs, and global trade disruptions.

Key Forecast Revisions
? Revised STOXX 600 Price Targets:

3-Month: 510 (from 560) → -6% return

6-Month: 530 (from 570) → -2% return

12-Month: 570 (from 580) → 5% return

? Earnings Growth Outlook Trimmed

2025 EPS Growth: 2% (previously 4%)

2026 EPS Growth: 4% (previously 6%)

Below consensus estimates of 6% (2025) and 11% (2026)

Consensus expectations for 2025 EPS growth have already fallen from 8% earlier this year, reflecting a broader downward earnings trend.

Why the Downgrade?
? Trade War Risks Intensify

US to impose 15% reciprocal tariffs on all trading partners (previously expected at 10%).

EU accounts for ~15% of US imports, with machinery, pharmaceuticals, and chemicals set to suffer.

? Weaker Global Growth

Goldman Sachs cuts US Q4 2025 GDP forecast to 1% (from 1.5%).

Tariffs could slow European growth, hurting corporate earnings.

Tracking STOXX 600 & Market Risks
? Key APIs to Monitor Market Trends:

Sector P/E Ratio APIAssess how valuation shifts impact key European sectors like manufacturing, pharma, and chemicals.

Earnings Historical APITrack European earnings trends and compare them with market expectations.

What’s Next for European Markets?
? Will European stocks rebound, or is further downside ahead?? How will tariff escalations impact earnings beyond 2025?? Could Europe’s central banks step in to offset economic headwinds?
? Stay informed as STOXX 600 reacts to shifting economic conditions!