Europe’s benchmark index fell on Friday, pulling back from the brink of a record high as a sell-off in US tech stocks weighed on global gauges. The Stoxx Europe 600 fell 0.5%, reversing earlier gains. The index ended the session within just over 1% of its November close. Travel and leisure as well as utility stocks outperformed, while banks and basic resources led declines. UBS Group AG shares rose 2.5% to their highest level since 2008, after a group of centre-right Swiss lawmakers proposed a compromise solution in the debate over the group’s capital levels, focusing on allowing the bank to use more convertible bonds to meet its higher future requirement. Gilles Guibout, head of European equities at AXA IM, said with most economists betting on improving European growth, “this should mean double-digit earnings growth in 2026, and no reason to be bearish.” Sportswear stocks were higher after Lululemon Athletica shares rose as the yoga wear maker boosted its full-year outlook. Adidas AG rose 2.0% and Puma SE added 3.2%. The Stoxx Europe 600 index is expected to rise by about 7% by the end of next year and reach 620 points, according to the median forecast in a Bloomberg survey of 17 strategists. The last time forecasters were so uniformly bullish was 2018, when the Stoxx 600 fell 13%. “Everyone is convincing themselves that there is going to be a Christmas rally, so it looks like there will be one,” said Karen Georges, a fund manager at Ecofi Investissements in Paris. “Investors are eager to buy this year’s arrears, it’s a good time to diversify your portfolio right now.” For more information about stock markets: Do you want more news about this market? Click here for a curated First Word feed of active news from Bloomberg and select sources. This can be customized according to your preferences by clicking in Actions on the toolbar or pressing the HELP key for help. To subscribe to a daily list of European analyst rating changes, click here. With help from Michael Msika, Sagarika Jaisinghani and Rheaa Rao. ©2025 Bloomberg LP This article was generated from an automated news agency feed with no text modifications.