"Goldman Sachs" reduces its expectations for European stocks, amid the threats of customs duties

Goldman Sachs Group strategy has reduced their expectations for European stock targets due to the expected impact of customs duties that US President Donald Trump intends to impose, a bet that contradicts the superiority of the region’s superiority on its US counterparts. The expert team, led by Sharon Bell, currently expects Stoxx Europe 600 to trade at 510 points within three months, compared to their previous estimate of 560 points, expecting US fees to be higher than expected. The new target means a 4.5% decrease from the closure of yesterday. Bell said the reduction also reflects the expectations of weaker economic growth in both the United States and Europe. The shares go through a correction period that Bell has written in a memorandum of clients: “The periods of economic recession are usually accompanied by correction movements in the equities, and although the European market has been strong in the recent period, which has seen the weakness of US stock indicators, we find that European affirmative movements are closely linked.” The vision of Bell is significantly contrary to the increasing optimism about European stocks, as the “Stoxx 600” index has just registered its largest quarterly superiority, compared to the ‘S&P 500’ index (S&P 500), in dollars, amid optimism thanks to the bets on spending and the possibility of a Ceasefire the stability of political conditions. Nearly half of the analysts in a poll conducted by Bloomberg last month increased their expectations for the (European) stock index target at the end of 2025. City Group Piaata Mansi, who expected European shares to recover last October, said European shares are a candidate to achieve more profits. Nevertheless, in the United States, the streets warned against the effects of customs duties, as David Costin Goldman Sachs reduced to expect the S&P 500 index for the second time this month at the end of the year. According to a White House spokesman, customs duties are expected to reveal a package of mutual customs duties during an event in the Garden or Roses in the White House. European sectors – such as car and mining companies – can be very vulnerable to customs. The “Goldman” team in Europe also reduced its expectations for the European Stock Index target for 12 months to 570 points from 580 points. The new goal still means a record increase in the index as they expect to compensate for reducing interest and the increase in financial and defensive spending in the coming years, part of the impact of customs duties. Bell concluded: “We are still emphasizing that the relative decline in Europe’s shares compared to its US counterparts provides some protection, and that long -term purchasing centers in Europe are still low.”