Goldman Sachs predicts European STOXX 600 to soar with lower rates in store at the ECB

<p>Goldman Sachs' analysts have lifted their 2024 forecast for the European STOXX 600 index to 500</p><p>GS cite their expectation of a boost from lower European Central Bank interest rates:</p><ul><li><a href="https://www.forexlive.com/centralbank/goldman-sachs-forecasts-first-rate-cut-from-european-central-bank-ecb-in-april-2024-20231207/" target="_blank" rel="follow" data-article-link="true">Goldman Sachs forecasts first rate cut from European Central Bank (ECB) in April 2024,</a></li></ul><p>and say that the index will rise despite weaker growth expected and market concern of capex and China. </p><ul><li>"We find that lower inflation combined with lower rates is typically associated with modestly higher valuations," </li><li>"On average, since 1973 European equities have delivered 7% real per annum price returns in an environment of 1-3% inflation and falling."</li></ul>

This article was written by Eamonn Sheridan at www.forexlive.com.