A major Wall Street bank just dropped a pretty bullish call on European stocks. They're penciling in STOXX 600 hitting 640 by the end of 2026 – crediting fiscal stimulus measures as the key driver behind this upside projection.

The rationale? Policymakers across Europe are expected to roll out more supportive fiscal policies, which could inject fresh momentum into equity markets. It's worth watching how these macro tailwinds might ripple through risk assets more broadly, especially as institutional money continues hunting for yield in this environment.

For anyone tracking cross-market correlations, European equity strength often signals broader risk-on sentiment – something that historically hasn't been irrelevant to crypto and alternative asset flows.