Barclays: Despite risks in Europe, stocks will still rise this year

Barclays strategists expect global equities to continue rising through year-end, but that outlook hinges on stable bond yields and oil prices, as well as sustained market confidence in AI investment. A team led by Emmanuel Cau wrote that U.S. stocks remain supported by AI-related earnings, but the market's growing reliance on a handful of tech companies makes the broader index more fragile. Europe faces pressure from rising financing costs, higher oil prices and France's fiscal troubles. Investor sentiment toward European equities is increasingly bearish, but analysts say fears of a broad financial crisis are overblown. European bank stocks may face further selling, but their underlying businesses remain sound, and third-quarter earnings could help restore market confidence.