Goldman Sachs and Barclays lift their 2026 Stoxx 600 forecasts after the US‑Iran deal lifted sentiment. Goldman Sachs now projects the index at 670 points, up 50 from its last reading. Barclays matches the lift, citing a clearer oil backdrop and softer rate hikes. The adjustment signals a shift toward a recovery driven by technology and energy easing.

Citigroup’s Beata Manthey warns that surface gains mask uneven sector performance, with many names still below pre‑war levels. She expects a second‑phase rebound as rotation widens, especially in AI. AI remains the core growth engine, buoyed by solid earnings and consumer spending. Investors eye this as a chance to capture upside in lagging sectors.

Brent oil fell sharply after the interim deal, reaching lows unseen since March, easing pressure on central banks to hike rates. Barclays’ Emmanuel Cau notes the lower tail risk should let broader trading resume, though exposure remains tilted toward the tech‑heavy US market for investors worldwide.

SocGen cuts its target to 600, warning of a potential 8.5% dip amid trade tensions ahead of US midterms. UBS highlights that with oil and rate expectations stabilizing, Europe’s earnings growth could falter, risking a downgrade of the market’s leading contributors. Investors now weigh cautious optimism against lingering volatility.