Goldman Sachs cut its forecasts for European and UK equity benchmarks citing sluggish global growth, a stronger euro and weaker-than-expected commodity prices. Goldman reduced its 12-month target on the pan-European STOXX 600 index to 345 points from 380, a reduction of around 9 percent.
"Our 2016 EPS downgrade is a function of a weaker global outlook, a more Dovish Fed (stronger euro, lower risk-free rate) and weaker commodity prices than we forecast," Goldman wrote in a note.