Goldman Sachs targets further gains for the pan-European STOXX 600 index.

The Goldman team wrote, "Coming into the year, our expectation was that Europe would be a smaller source of destabilising shocks for the global economy and markets but that, equally, it would not be a source of positive catalysts either."

The team added that, "To a large extent, that has largely played out: shocks from the Italian elections and Cyprus remained mostly localized and the region as a whole has continued to contract modestly in the first six months of the year. But lately it has been possible to tell a slightly more upbeat story for the region."

The Goldman team is setting a 6-month target of 320 points for the STOXX 600 index. They also established a 12-month target of 340 points, with the STOXX 600 up 0.7 percent at 287.46 points.

Adding on to notes that they wrote in a research note, the team wrote, "Here too, growth indicators have been on an upward trajectory for the past several months, and our economists expect the Bank of England, led by new Governor Carney, to embark on a fresh bout of monetary easing through some form of forward guidance for policy."