There are a few reports on Société Générale’s view doing the rounds.
2026 index could reach 6,900 by year-end
- a potential range of 6,500-7,250 if re-rating occurs in a rate-cutting environment
- say rate cuts from the Federal Reserve could push the index above 7500 in 2026 and into bubble territory
SG cite positive impacts from:
- lower oil prices
- “The One Big Beautiful Bill”
- less stringent regulations
- fiscal spending globally
- duplication of supply chains
- nominal EPS should continue to grow higher
SG expect the USD to continue weakening, sending EUR/USD to 1.2:
- “weakening in the USD looks set to continue until Fed rates are in the 3-handle and/or the yield curve (2s10s) is closer to 100bp.”
This article was written by Eamonn Sheridan at investinglive.com.
