HSBC Has Raised Year-End European Index Targets
The bank lifted projections for both the STOXX 600 and the FTSE 100 indices amid growing earnings optimism.
Updated on Sept. 23, 2026 in Stock Markets
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HSBC has raised its year-end target for the STOXX 600 index to 680 points and the FTSE 100 index to 11,390 points. These revisions reflect an improved economic outlook and strong forecasted earnings growth for European companies.
Why it matters
The upward revisions are driven by a healthier economic environment and expectations of robust earnings growth through 2027. This shift signals a more positive sentiment toward European equities among major financial institutions.
The new STOXX 600 target represents an implied 6.3% upside, while the FTSE 100 target suggests a 6.5% upside. Analysts also forecast European earnings growth of 15.6% in 2026 and 15.4% in 2027.
The players
HSBC
This is a multinational banking and financial services organization headquartered in London that provides global investment research and asset management.
The details
HSBC shifted its regional strategy by upgrading Italy to overweight while downgrading France to underweight. These adjustments follow data showing that regional revenue exposure for European firms has reached its highest level since 2017.
Timeline
2017 marked the previous high level for regional revenue exposure.
September 23, 2026, was when HSBC published these updated targets.
Year-end 2026 is the target date for the STOXX 600 and FTSE 100 projections.
2026 holds a forecasted European earnings growth rate of 15.6%.
2027 holds a forecasted European earnings growth rate of 15.4%.
Market Dynamics
This pivot aligns with the 2017 peak in regional revenue exposure for European companies, suggesting a structural return to high-exposure business models. It highlights how major banking forecasts are reacting to these long-term historical shifts in corporate earnings.
Retail investors tracking European equity markets may see shifts in portfolio allocations following HSBC’s regional rating changes for Italy and France. These adjusted index targets provide benchmarks for evaluating the potential performance of broad European and British market holdings.
The takeaway
The upward revision to major European indices highlights a broader institutional confidence in regional earnings recovery. Investors should monitor how these 2026 and 2027 growth projections influence regional asset rebalancing in their own portfolios.
Further reading
For more on evolving market valuations, visit the Stock Markets section.
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