Two major investment banks: European stocks have adjusted, and the next upward opportunity is brewing.

Jin10 data reported on September 1st, Goldman Sachs and JPMorgan believe that with the improvement of the economic outlook, European stock markets are expected to strengthen before the end of the year, breaking the previous narrow range of fluctuations. Goldman Sachs’ strategy team expects that by the end of 2025, the European Stoxx 600 index will rise by about 2%, reaching around 560 points. Due to the weakening of the dollar and an overly concentrated holdings in tech stocks, investors are increasingly hoping to reduce their dependence on the U.S. market. Goldman Sachs also predicts that the index will rise by 5% in the next year. JPMorgan strategist Mislav Matejka had previously accurately predicted the consolidation trend in July. He stated that the previous weakening of momentum was a healthy adjustment, as market sentiment was overly optimistic at the beginning of the year. Matejka believes that in the next one to two months, European stocks are likely to outperform U.S. stocks, but he also warns to pay attention to the risks posed by a weakening U.S. labor market and political turmoil in France.