European stock markets hit record highs; rally may be over, strategists expect to be flat by the end of the year

Bloomberg survey shows that strategists believe the record high in European stocks this week is the best market environment investors have seen this year. The median forecast from 17 analysts surveyed indicates that the STOXX Europe 600 index will be nearly unchanged from the record high of 630 points reached on Wednesday by the end of 2026. Strategists say that the positive factors supporting European stocks have largely been absorbed by the market, and expectations for double-digit corporate earnings growth remain quite high.