Barclays Bank predicts that the stock market will rise in 2026.

Barclays Bank remains optimistic about global and European stock markets, expecting markets to continue to rise despite policy uncertainty. The bank believes that strong fundamentals, ongoing AI-driven investments, and anticipated monetary easing policies will provide support to the stock market. Profit growth is expected to lead the way, with European earnings per share forecasted to increase by 8% next year. Barclays Bank emphasizes that European stock markets are undervalued, setting a target price of 620 points for the STOXX 600 index, assuming the AI cycle continues and market laggards improve.