Goldman Sachs lowers its expectations for European stock performance.

The renowned investment bank Goldman Sachs has lowered its forecasts for the performance of European stock indices over the next 12 months in a research note released on Tuesday; the American bank revised its previous forecasts for both the Euro Stoxx 600 and the UK FTSE.

Regarding the Euro Stoxx 600 forecast, Goldman Sachs predicts that the European benchmark index will reach 530 points over the next 12 months, down from the bank's previous forecast of 540 points.

On the other hand, Goldman Sachs now expects the FTSE index to stabilize at 8500 points, whereas it was previously expected to reach 8800 points.

The investment bank clarified that the downward revision of the performance of European stocks was driven by increasing trade risks that could undermine economic activity in the region, posing a major risk to the outlook for European stocks in the coming year.