(Reuters) - Gains in European and British equities will be capped next year by lacklustre earnings growth, fragile economic outlook and uncertainty around timing of interest rate cuts, HSBC (LON:HSBA) said in a note on Wednesday. The brokerage expects the pan-European STOXX 600 index to end 2024 at 490 points, up 8% from current levels, underpeforming the near 15% rise HSBC expects for global stocks as measured by the FTSE All World index. "We see risks to EBIT (earnings before interest and taxes) margins from rising wage inflation and to earnings from higher interest costs for some companies," said Edward Stanford, HSBC's head of European equity strategy. Profits at telecommunications, healthcare and tech sectors will buoy the index, thanks to overseas revenue exposure and "high growth-style credentials in a predominantly value market", he added.
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European equities' upside could be limited next year, HSBC says
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