BofA raises STOXX 600 index target to 530 points

BofA Global Research on Friday raised its year-end target for the pan-European STOXX 600 index to 530 from 500 on resilience in global growth following a US-China trade truce, reports Reuters.

European equities remain close to all-time highs despite the global trade war and escalating tensions in the Israel-Iran conflict, the Wall Street brokerage said.

"The main reason for the resilience, is that these events (Israel-Iran conflict, trade war) have not yet translated into a clear-cut weakening in global growth," BofA said, maintaining its "negative" stance on the region's equities.

The brokerage's current target for the pan-European benchmark index still implies a nearly 1.1% downside to its Thursday close of 535.86.

While a trade deal between the US and China as well as a benign May US inflation report have brought some relief to financial markets, pressures from tariffs and escalating tensions in the Middle East are expected to weigh on global economic growth.