Stoxx Europe 600 index up 7% in 2025, but analysts warn of economic risks from trade tariffs.
Emese Grancsa
International
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European stock markets have started 2025 with a 7% rise, attracting investors seeking refuge from US uncertainties. However, analysts point out that the rise is based on a fragile assumption on global trade conflict. The Federal Reserve has revised its forecast for US economic growth, which could also affect Europe. BofA forecasts a fall in the Stoxx Europe 600 index, while JP Morgan and Barclays take a more cautious view. The impact of trade tariffs, exemplified by Adidas and Vietnam, will affect supply chains and profitability.
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