"2024: Investor Outlook for Europe"

Economists are cautiously optimistic about the European economy in 2024, anticipating a transition to expansion despite lingering uncertainties. Hopes for monetary policy easing from the U.S. Federal Reserve and the European Central Bank have buoyed stock markets, with expectations of rate cuts and declining inflation. Key factors influencing the economy and markets include monetary transmission, the labor market, and competitiveness. Barclays maintains a positive outlook for equity returns, particularly for value and small-cap stocks, while holding a neutral view on quality and growth stocks.