STOXX 600 Hits Record 653 as BofA Lifts Year-End Target to 630

The STOXX 600 reached a fresh record high of 653.19 on Friday before trading near 652.66, as BofA Global Research raised its year-end target to 630 from 590. The upgrade reflects fading energy shocks, cooling inflation, Germany's new fiscal stimulus and reform package, and a less hawkish ECB outlook. UBS noted potential for the rally to broaden into industrials and luxury stocks, while earnings growth is projected at 14.5% in Q2, dropping to 5.5% excluding energy. BofA remains underweight on Europe overall, warning of possible pullbacks if valuations or AI momentum falter, and expects a near-term dip to 595 before recovery.