US tariff war hurting trade with China; Beijing ‘confident’ of hitting growth targets – business live

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Goldman Sachs analysts remain cautious about the outlook for shares, though.

In a new research note today, Goldman say they “continue to see equities as in a bear market”, due to the likelihood of elevated trade uncertainty and weaker economic activity.

Despite the uncertainty, the STOXX 600 is up 3% year-to-date, having rebounded by 11% from its recent trough. Looking at the performance of Cyclicals versus Defensives, we find that the European equity market is currently pricing Euro area GDP growth of approximately 1.5%.

This is higher than our economists’ forecast for Euro area real GDP growth of 0.7% in 2025.