STOCK EXCHANGE: Strategists predict a strong stock market year 2026 for Europe – Historically, this has been a bad sign

European stock markets opened up in the wake of Asia. The pan-European Stoxx Europe 600 was quoted about 10 minutes after the opening, up 0.3 percent.

In London, the FTSE 100 was up 0.4 percent, while in Paris the CAC 40 was up 0.2 percent. In Frankfurt, the DAX had strengthened by 0.4 percent.

The stock market year has been strong in many markets, and the stock market year 2026 is going to be strong, at least if the strategists are to be believed.

The strategists interviewed by Bloomberg are predicting an exceptionally unanimous rise for the European stock market in 2026. The strategists believe that the Stoxx Europe 600 index will rise by around seven percent and break the 600-point mark.

Even the most cautious estimates predict only a marginal decline, while the most optimistic banks see room for growth of more than ten percent. The index was at 582 points on Friday morning.

However, there is a cautionary example in history. The last time strategists were so unanimous was in 2018, when, despite strong forecasts, the index ended up with a 13 percent decline. The economic outlook now bears considerable similarities to that year, which raises the question of the sustainability of optimism, Bloomberg estimates.

Investors are attracted to Europe by lower valuation levels than in the United States and the need to diversify the portfolio due to the concentration of companies in the United States.

It’s already been a strong year, as the Stoxx 600 is on its way to its third consecutive year of growth. In particular, the Spanish and German stock markets have produced excellent returns, while France has lagged behind in comparison.

“Now is a good time to buy European stocks. Earnings could recover significantly next year,” JP Morgan’s Europe equity strategist Mislav Matejka reviews Bloomberg.

According to Bloomberg’s assessment, it is critical for future success whether the rise extends beyond banks and the defense industry to, for example, the automotive industry and energy.

Although Bank of America warns that the market is underpricing the risks, the European economy will be supported in the coming years by huge investments in electricity networks and the green transition, the news agency wrote in the morning.