European Stocks Face Limited Growth Amid Iran War
A Reuters poll of analysts indicates the STOXX 600 will struggle to post significant gains through 2026 as the conflict with Iran impacts energy prices and corporate earnings. While the index is expected to rise about 2.6 percent by year-end, Europe remains vulnerable due to its limited exposure to the global artificial intelligence rally.
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X STOXX EUROPE 600 1C is expected to end the year at 645 points, up around 2.6% from its current level, as geopolitical conflict limits growth, a Reuters poll found. The median forecast from 14 analysts polled May 19-26 shows the index lagging the 6.1% gain seen before the war. Investors face a market weighed down by energy inflation and a lack of high-growth technology exposure compared to global peers.
