Markets Edition: European Outlook for 2026: When Cyclical Pickup Meets Fiscal Tailwinds
Key Highlights
- Citi's 2026 European Equities Outlook projects a constructive market with a Stoxx 600 target of 640, driven by favorable macro environments and anticipated 11% EPS growth
- Fiscal tailwinds, AI broadening beyond tech giants, and potential geopolitical stability are set to create a super-favorable backdrop for European equities and diversified investment
- Investors should be aware of broader market volatility and demanding valuations as key risks, emphasizing the importance of EPS delivery for sustained upside
Elise Badoy, Head of Equity Research for Europe, UK, the Middle East and Africa, sits down with Beata Manthey, Head of European Equity Strategy, to discuss our European outlook for 2026. Topics discussed include the prospects for fiscal revival, the AI broadening theme and geopolitics.
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Elise Badoy, Head of EMEA Equity Research
Elise Badoy is a Managing Director and Head of Equity Research in EMEA. Elise joined Citi in February 2010 and is a member of the Global Research Executive Committee. Prior to Citi, Elise worked at Goldman Sachs from 1999 to 2009, initially on the buy-side at GSAM and from 2001 in GS's Global Investment Research division covering the Consumer Staples sector. Prior to joining Goldman Sachs, she worked at Daiwa Securities in Equity Capital Markets and at ING Barings in Investment Banking.
Beata Manthey, Head of European Equity Strategy
Beata Manthey is Head of European Equity Strategy in Citi Research. She joined Citi in 2007 as a Global Equity Strategist. Beata is part of a team that focuses on broader equity market issues. Prior to joining Citi, she worked at the European Bank for Reconstruction & Development.
