Analysts at Citigroup said Wednesday the pan-European STOXX 600 index will end 2023 at 475 points, a rise of about 8% based on the index's current levels.

The brokerage expects European companies' earnings to fall 10% this year as they grapple with record high inflation and historic rises in central bank interest rates.

The analysts expect London's blue-chip FTSE 100 index to end the year at 8,000 points, about 5% higher from current levels.