Barclays lifts STOXX 600 index's annual target to 570

(Reuters) -Barclays on Wednesday raised its year-end forecast for the STOXX 600 index to 570 points, on easing trade and geo-political tensions and an accommodative monetary policy backdrop.

The British brokerage's new target for the benchmark index implies an upside of about 6% from its last close of 540.25 points. In its last revision in May, Barclays had set a target of 540.

"Uncertainties on trade and geopolitics have likely peaked, and growth/liquidity fundamentals remain broadly supportive. So we think equities will most likely continue to climb the wall of worry" in the second half of this year, Barclays said in a note.

Earlier this week, Bloomberg News reported that the European Union was open to a trade deal with the United States that would impose a universal 10% tariff on many of its exports, while also seeking U.S. commitments to reduce duties in certain key sectors.

Concerns around U.S. tariffs and their potential drag on global growth have resurfaced, with the July 9 deadline for countries to reach trade deals with Washington fast approaching.

"The EU economy is also expected to slow, but the combination of ECB cuts and Germany fiscal stimulus should boost medium-term growth in the region," the brokerage added.

The ECB, after delivering eight rate cuts since mid-2024, has recently signaled a pause in its easing cycle as inflation returns to its 2% target.

(Reporting by Joel Jose in Bengaluru; Editing by Shailesh Kuber)

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