HSBC raised its year-end target for the STOXX 600 to 680 from 670, its first increase this year, citing stronger earnings growth prospects, improving business sentiment and a healthier economic outlook. The new target implies about 6.3% upside from current levels, while the broker set a target of 760 for the end of next year. HSBC forecasts European earnings growth of 15.6% in 2026 and 15.4% in 2027. It also raised its year-end FTSE 100 target to 11,390 from 10,980, implying nearly 6.5% upside. The broker upgraded Italy to overweight and downgraded France to underweight. HSBC said European companies have their highest regional revenue exposure since 2017, offering some protection from currency movements, although overseas sales still account for about half of revenue. A weaker euro and other European currencies could further support profits. HSBC also expects the FTSE 250 to lead the FTSE 100 in 2027 earnings growth, while maintaining unchanged overall sector weightings.