European stock markets have risen above a key psychological barrier this month and show no signs of stopping. The STOXX Europe 600 hit 500 points for the first time last week, and the benchmark index has since reached another all-time high. The records come alongside positive returns for seven consecutive weeks. However, judging by history, investors need not feel nervous about the market euphoria. According to CNBC Pro’s analysis of stock market data going back to 1987, stocks could see even bigger gains. .STOXX 1Y mountain Over the past 37 years, the index has risen for seven consecutive weeks on 50 occasions, not including the current run. Of those, stocks rose 30 times – or 60% of the time – in the week following the streak, resulting in gains averaging 1.23%. Of course, past performance cannot be used as the sole factor in determining future returns. The odds were generally higher for a positive return one month after a seven-week rally, with stocks rising on 32 occasions and gaining 2.7% on average. When shares fell immediately after seven weeks of gains, they lost an average of 1.17%. After a month, if the shares lose momentum, they record average losses of 1.96%. The Stoxx Europe 600 recorded its longest winning streak between June and August 1993, when the market rose for 12 consecutive weeks. What does Wall Street think? According to FactSet data, the weighted average of analysts’ price targets for Stoxx Europe 600 companies points towards a 9.1% upside potential for the index. However, some equity strategists are warning that growth in European economies is expected to slow, leading to a potential cut in earnings per share (EPS) expectations for large companies. “Our macro projections are consistent with a ~15% downside for the Stoxx 600 by the fourth quarter, as well as a 15% underperformance for European cyclicals relative to defensives,” said Sebastian Raedler, European equity strategist of Bank of America. Barclays strategists believe shares will rise this year. “We expect a higher, but more subdued, stock market in 2024,” Barclays strategists led by Emmanuel Cau said in a note to clients on Jan. 31. “While disinflation is non-linear, activity data is mixed and the pace/timing of rate cuts is in question, we believe a soft landing remains a plausible scenario, which should ultimately help stocks push higher” The bank has a year-end price target of 510 points for the Stoxx Europe 600.