EU stocks to fall 10% by year-end: BofA

BofA Global Reseach has cut its outlook for European stocks, predicting a decline of nearly 10 per cent by year-end given a shift in the macro backdrop towards “anti-goldilocks”, where slowing growth is accompanied by higher discount rates.

In a note received on Friday, BofA said it saw the STOXX 600 index falling to 420 points by end-2021, and downgraded its stance on the market to negative from neutral (.STOXX).

The index was around 452 points on Friday. European stocks have risen by 70 per cent over the past 18 months boosted by a powerful economic recovery.