BofA lifts STOXX 600 annual target to 530 points
European equities remain close to all-time highs despite the global trade war and escalating tensions in the Israel-Iran conflict, the Wall Street brokerage said.
"The main reason for the resilience, is that these events (Israel-Iran conflict, trade war) have not yet translated into a clear-cut weakening in global growth," BofA said, maintaining its "negative" stance on the region's equities.
The brokerage's current target for the pan-European benchmark index still implies a nearly 1.1% downside to its Thursday close of 535.86.
While a trade deal between the U.S. and China as well as a benign May U.S. inflation report have brought some relief to financial markets, pressures from tariffs and escalating tensions in the Middle East are expected to weigh on global economic growth.
BofA upgraded the European mining sector to "overweight" from "marketweight", citing attractive valuations after significant underperformance, with support from a weaker dollar.
The brokerage downgraded airlines to "underweight" from "marketweight", on potential risks from higher oil prices if Middle East tensions escalate.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Reuters
7 minutes ago
- Reuters
Trump says US, EU have 'good chance' of reaching trade deal
TURNBERRY, Scotland, July 27 (Reuters) - U.S. President Donald Trump on Sunday said there is a good chance that the United States and European Union would reach a trade agreement, citing three or four main sticking points. Trump made the comment at the start of a meeting with European Commission President Ursula von der Leyen at his golf property in Turnberry, on Scotland's western coast. Trump said the main sticking point was "fairness," citing barriers to U.S. exports of cars and agriculture.
Telegraph
7 minutes ago
- Telegraph
Why Liverpool could not refuse Bayern's £70m Luis Diaz offer
Liverpool have established new status as the Premier League's big spenders, but their latest transfer activity cements their reputation among the best salesmen in the business. The most prominent purchases will always grab the biggest headlines, but the money Liverpool have recouped in the Fenway Sports Group era will have passed the £1bn mark by the end of the current transfer window. Even 'Del Boy' would look at some of the trades the club has pulled off over the last 10 years and doff his flat cap. Luis Diaz's move to Bayern Munich for a fee of £70m was not top of the agenda heading into this summer, but was finally accepted because the German champions moved into offer-that-could-not-be-refused territory. The popular and hard-working Diaz leaves Anfield having proven the perfect FSG purchase – signed at the peak of his powers for just £37m and sold in his late 20s for nearly double the price. Bayern have committed to pay handsomely for a winger who will be in his early 30s once his contract ends – and not just in terms of the fee, Diaz's wages will be significantly higher in Bavaria than at Anfield. Had Liverpool been prepared to match the salary with the new contract Diaz and his representatives have been agitating for since 2023, this move would never have happened. The player first asked to leave in 2024, frustrated the pay rise he wanted was not forthcoming as two offers of another Anfield deal were rejected. FSG football CEO Michael Edwards and his executive team are uncompromising when it comes to establishing a player's value. When crunching the data, they simply believed better options were available for the conservatively estimated £10m-plus-a-year contract the Colombian wanted. And once Bayern's bids kept creeping up, privately Edwards and sporting director Richard Hughes knew the valuation they had in mind to convince them to sell was imminent. Excellent though he has been, Diaz has gone the same way as Liverpool legends such as Sadio Mane, Roberto Firmino and Georginio Wijnaldum, all of whom hoped for better deals before realising Edwards was unmoved by sentiment. Mane also moved to Bayern when, aged 30, Liverpool decided they could not keep paying him the same £20m-a-year salary as Mohamed Salah. Their analytics team had to predict which of the dynamic pair was most likely to maintain elite levels well into their 30s. Mane will always be regarded as one of the greatest of all Liverpool players, but it was obvious within a year the club had made the right call selling him for £35m. Bayern sold Mane to the Saudi Arabia Pro League for a £10m loss 12 months later. Selling Philippe Coutinho to Barcelona for £142m ranks as the most shrewd business of the modern era by any club, even if it was resisted at the time, but it is the cumulative impact of less high-profile sales which have enabled Liverpool to keep living within their means. In 2016 they received a combined £18m from Bournemouth for winger Jordon Ibe and full-back Brad Smith; in 2017 they were paid £4m by Hull City for Kevin Stewart (a deal which effectively took Andy Robertson in the opposite direction for just £3.5m), and convinced Crystal Palace to pay £26m for Mamadou Sakho; in 2018, Leicester City paid £12.5m for third-choice keeper Danny Ward, while a year later Danny Ings commanded an £18m fee from Southampton, while academy graduate Ryan Kent left for Rangers for £6.5m. And in 2020, Liverpool received nearly £30m by selling youngsters Rhian Brewster and Ki-Jana Hoever to Sheffield United and Wolverhampton Wanderers, respectively. These trends have continued over the last five years, maximum value accumulated while some of those who left Liverpool for big fees would unfortunately make a substantial 'where are they now?' feature. The record spending of the summer of 2025 is on course to be matched by a record amount recouped. As with other outgoings, a more rounded assessment on the merits of selling Diaz will be made in time. An instant assessment will be based on whether his replacement is as good or better. History shows Liverpool get far more right than wrong. If the business bible The Art of the Deal was ever recommissioned, it would be smarter if the publishers ignored Donald Trump and looked to Edwards, Hughes and FSG president Mike Gordon for their insights.
The Sun
7 minutes ago
- The Sun
Full list of Lidl bargains landing in stores next week including Dyson dupe and handheld steamer
LIDL has revealed a huge selection of new middle aisle homeware bargains that are set to launch in store next week. Among the items on offer are a handheld steamer, vacuum cleaner and mattress topper. 7 The items will go on sale in Lidl stores from Thursday - but you'll need to be quick as when they're gone, they're gone. Silvercrest cordless vacuum One of the gems for sale is a Silvercrest Cordless Cyclone Vacuum which is a Dyson dupe. The hoover costs £69.99 - £330.01 less than the Dyson version. It can be used as a handheld or upright vacuum cleaner and is cordless, which makes cleaning behind the back of the sofa much easier. It has two suction levels and can run for up to 45 minutes at a time without charging. Gtech cordless vacuum Lidl is also selling the award-winning Gtech AirRam MK2 Cordless Vacuum. The powerful gadget can run for up to 40 minutes with every four hour charge. Plus, it can move between carpets and hard floors without needing to change settings - saving you time while doing your weekly clean. The hoover would usually set you back up to £280 but it can be snapped up this week for £149. Plus it's not the only cleaning gadget coming to the middle of Lidl this week. Silvercrest garment steamer The supermarket is also selling the Silvercrest Garment Steamer in black or white. The powerful gadget makes removing wrinkles from clothes easy and has a wide brush attachment for thicker fabrics. The removable water tank holds 250ml, so it's perfect for steaming a whole load of washing. Phillips fabric shaver 7 Meanwhile, another handy gadget on offer can help you to remove bobbles from your clothes. The Philips Fabric Shaver can help you extend the life of your garments and other fabrics. It has three mesh hole sizes to help you combat all sizes of pilling. Plus it is safe to use on even delicate fabrics. How to save on your supermarket shop THERE are plenty of ways to save on your grocery shop. You can look out for yellow or red stickers on products, which show when they've been reduced. If the food is fresh, you'll have to eat it quickly or freeze it for another time. Making a list should also save you money, as you'll be less likely to make any rash purchases when you get to the supermarket. Going own brand can be one easy way to save hundreds of pounds a year on your food bills too. This means ditching "finest" or "luxury" products and instead going for "own" or value" type of lines. Plenty of supermarkets run wonky veg and fruit schemes where you can get cheap prices if they're misshapen or imperfect. For example, Lidl runs its Waste Not scheme, offering boxes of 5kg of fruit and vegetables for just £1.50. If you're on a low income and a parent, you may be able to get up to £442 a year in Healthy Start vouchers to use at the supermarket too. Plus, many councils offer supermarket vouchers as part of the Household Support Fund. It comes with a two year warranty and a removable lint container, making it easy to empty and clean. Lidl is also selling several home essentials and decorative items. Silentnight mattress topper Among them are the Silentnight Memory Foam Pressure Relieving Mattress Topper, which can help to reduce pressure points on your spine. Its 2.5cm deep memory foam can give relief to your muscles and reduce aches and pains. It has a two year warranty and a machine washable cover. The double size will set you back £49.99 while the king costs £59.99. Household lamps Also on offer are two household lamps which cost £9.99 each. The Livarno Home 32cm LED table lamp has a USB port for charging mobile devices including your smart phone, tablet or MP3 player. It has an energy-saving LED module which gives off warm white light. Meanwhile, the lampshade is made from frosted glass. Meanwhile, the Livarno Home LED Table Lamp contains all the same features but is in a cylindrical shape. Fairy soap dispenser Among the cheapest items on offer is the Fairy Soap Dispensing Dish Brush, which costs just £2.99. Every sponge has a scourer head to help you clean hard to reach spots. The handle has a cap which can be filled with washing up liquid which is dispensed directly onto your dishes, helping to clean them faster. .
