Improved economic growth prospects provide support for Wall Street to be bullish on European stocks.

Some top Wall Street strategists say that as strong economic prospects drive the stock market to break out of a narrow trading range, European stock markets may rise in the coming months. Led by Sharon Bell, Goldman Sachs strategists expect the pan-European Stoxx 600 index to rise 2% by the end of 2025, to around 560 points, benefiting from improved economic growth prospects, lower positions, and relatively cheaper valuations. The strategists also point out that investors "increasingly want to diversify their exposure to the U.S. market, both due to the weak U.S. dollar and because holdings in the technology sector are too concentrated." These strategists also forecast that the pan-European Stoxx 600 index will rise by 5% in the next year.