Barclays cuts STOXX 600 target to 490 due to trade tensions and recession fears

From Yahoo Finance: 2025-04-07 06:17:00

Barclays lowers year-end target for Europe’s STOXX 600 index to 490 due to escalating trade tensions and U.S. tariffs, sparking recession fears. European stocks hit 16-month low amidst global market turmoil. Worst-case scenario sees index dropping to 390, but rebound possible to 550 if trade tensions ease. Index closed at 496.33 on Friday.

Barclays predicts global equities won’t reach recent highs soon, citing significant damage. J.P. Morgan and Goldman Sachs raise recession risk forecasts, with U.S. and global recession odds estimated at 60% and 45% respectively. Barclays upgrades UK’s FTSE 100 to “overweight” due to stagflation worries, adjusts ratings on healthcare, financials, and leisure sectors.

Read more: Barclays cuts its STOXX 600 target again, says crisis muddying forecasts