Bank of America analysts forecast the Euro Stoxx 600 will fall 10% to 580 by Q2 2027, pointing to uncertainty around AI revenue, intensifying US-China competition on AI pricing, and rising borrowing costs squeezing European company earnings.
This is a single analyst house view, not a confirmed market consensus, so it signals a cautious stance on European equities rather than a settled expectation. The three concerns cited — AI monetization, competitive pricing pressure, and borrowing costs — are ongoing headwinds that could weigh on earnings if they deepen.