Equity Strategy: Look for further upside in Europe in 2H - updating our targets and positioning

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Equity Strategy: Look for further upside in Europe in 2H - updating our targets and positioning

J P M O R G A N Global Markets Strategy

29 June 2026

Equity Strategy

Look for further upside in Europe in 2H - updating our

targets and positioning

• Overall, in terms of global equity outlook, we remain constructive for 2H, are Equity Strategy

AC staying with Cyclical trades and look for certain rotations compared to what Mislav Matejka, CFA

was an extremely narrow leadership in Q2 - top chart. This is not to say that (44-20) 7134-9741

Mag-7 and SOX are a sell. We believe the recent weakness in the space is mislav.matejka@jpmorgan.com

largely technical, positioning driven, and will ultimately be bought into. Mag-7 J.P. Morgan Securities plc

P/E relative is at the cheapest levels in 10 years, with earnings delivering. Prabhav Bhadani, CFA

Having said that, we do not believe AI trade will be the only story in town in (44-20) 7742-4404

prabhav.bhadani@jpmorgan.com

2H, and are looking for a broader market participation. J.P. Morgan Securities plc

• Regionally, European equities have reached our targets, with SXXP at ytd Nitya Saldanha, CFA

high last week, matching our target of 630 set in Year Ahead outlook, which (44 20) 7742 9986

was out last November, and delivering 13% upside over the period. We update nitya.saldanha@jpmchase.com

the targets in this report, looking for further upside from here, ranging from J.P. Morgan Securities plc

5-10%. Karishma Manpuria, CFA

(91-22) 6157-4115

• We believe Eurozone earnings growth is stepping up this year, after 3 flattish karishma.manpuria@jpmchase.com

years, at index level. There are some base effects in play, but our updated J.P. Morgan India Private Limited

Eurozone EPS growth forecast for 2026 now stands at 18%, and 12% for 2027.