Experts expect European stocks to rebound 20%

BRUSSELS: The worst start in years for European stocks is doing little to dim the view of strategists, who are mostly holding on to calls for gains of almost 20% through December.

The Stoxx Europe 600 Index will rise to 402, according to the average strategist estimate compiled by Bloomberg. While that’s lower than the 415 level forecasters targeted last month, they’re still counting on European Central Bank action and an improving domestic economy to help recover from the plunge that sent shares to a one-year low. Equities jumped the most in a month on Thursday after President Mario Draghi signaled another boost in stimulus. They climbed even more on Friday.

“The ECB is opening the door a little bit further, and probably in the second half of the year rates will be cut again,” said Philippe Gijsels, the chief strategy officer of BNP Paribas Fortis in Brussels.

Draghi acknowledged downside risks have increased and said the central bank may reconsider its monetary policy in March.