Barclays – Equity Strategy Chart Pack, 2026

Summary

The main theme is investment strategy in equities for the year 2026.

Key takeaways include an expected positive trend in the equity market for 2026, support from seasonal factors in December, and a reduction in excessive market optimism. The influence of decisions by the Fed and the Bank of Japan may cause market fluctuations. A 20% rise in equities in 2025 raises expectations for positive surprises. Continued growth is expected amid a 'wall of worry' driven by the maturity of the AI supercycle. Easing monetary and fiscal policies should support GDP growth in the US and EU above trend. Profit recovery is expected with no extreme valuations. European equities are well-positioned to benefit from reflationary winds due to lower valuations and less reliance on AI. The target for SXXP is 620 (+9%) with a pro-cyclical tilt.

Region: European Union

Published: January 2026

Author(s): Barclays

Language: English

Tech drivers: AI Quantum Computing

Social drivers: Globalisation Pandemics Sustainability and ethics

Geopolitical drivers: Economic conditions Political instability and conflicts Regulatory changes Workforce availability

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