Per Woofun AI, strategists at Goldman Sachs, Barclays, and Societe Generale have revised their year-end forecasts for European equities upward, citing improved sentiment stemming from the US-Iran peace agreement. A Bloomberg survey of 16 analysts indicates that the Euro Stoxx 600 Index is projected to close at 640 points by the end of 2026, a level consistent with its recent all-time high.

While certain sectors have yet to reclaim pre-conflict valuations, market participants view this divergence as a catalyst for further upside. Investors are anticipated to deploy capital through sector rotation, positioning portfolios to capture gains from the anticipated economic recovery rally.