Goldman Sachs trims European, UK equity index forecasts
[LONDON] Goldman Sachs cut its forecasts for European and UK equity benchmarks citing sluggish global growth, a stronger euro and weaker-than-expected commodity prices.
Goldman reduced its 12-month target on the pan-European STOXX 600 index to 345 points from 380, a reduction of around 9 per cent.
The Wall Street bank now sees 2016 earnings per share for the STOXX 600 falling 2 per cent. It had earlier forecast a growth of 4 per cent. "Our 2016 EPS downgrade is a function of a weaker global outlook, a more Dovish Fed (stronger euro, lower risk-free rate) and weaker commodity prices than we forecast," Goldman wrote in a note.
Goldman cut its 12-month target on Britain's benchmark FTSE 100 index to 6,300 points from 6,550 points, and reduced its 12-month target on the euro zone's Euro STOXX 50 index to 3,070 from 3,500.
REUTERS
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Banking & Finance
Abu Dhabi returns to debt market with new US dollar bond
Ping An profit falls as market declines hurt investment returns
BOJ will hike rates if trend inflation accelerates, says Ueda
Binance’s rivals muscle in on Bitcoin trading around the world
Citi picks Amit Dhawan to head Singapore commercial bank operations
China finance ministry echoes Xi’s call for bond trading at PBOC