Euro Stoxx 50 to see further gains during 2022, whilst underperforming the US – Credit Suisse

The Euro Stoxx 50 initially saw a very strong uptrend during the first half of 2022, before settling into a more mean-reverting phase during the second half of the year. Analysts at Credit Suisse expect European equity markets to also move higher in 2022 in absolute terms, however, they expect Europe to continue to underperform the broader Developed equity space.

Core trends still seen as higher 

“Above the 4288 December high is needed to re-inject fresh upside momentum, with the next key resistance then seen at 4415, the 2021 YTD high. Above would then open the door further for a potential rise toward 4573, the key high of 2007.” 

“Key price supports are seen initially at the 200-day average at 4110, ahead of the October low at 3966, before the July low at 3905 and then critically the May low at 3858. We see those levels as the key lines in the sand that need to hold to avoid a larger topping structure being established.” 

“Despite the intact absolute uptrend, we expect European equities to continue to underperform versus MSCI World Developed and we do not expect a major change in this trend during 2022.”