HSBC raised the Stoxx 600 Index target at the end of 2026 from 670 points to 680 points, corresponding to the current level of upward space of about 7%, and gave a target of 760 points at the end of 2027, corresponding to a potential increase of about 20%. The bank said the increase was mainly based on corporate profit growth, valuation repair, and adjustments to business confidence and GDP expectations. In the UK market, HSBC expects profit growth to shift more towards mid-cap stocks in 2027. The FTSE 250 Index's earnings per share are expected to increase 14%, higher than 5% of the FTSE 100 Index, and the FTSE 250 Index's forward net market ratio is still about 25% lower than the 10-year average. HSBC also pointed out that European companies' share of revenue from the local market has risen to 51.2%, the highest since 2017, but the exchange rate is still an important profit variable; if the European currency depreciates 5% against the US dollar, it is expected to increase the region's earnings per share growth rate by about 3.1 percentage points in 2026.

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