Barclays: If Oil Prices Remain Around $100, the Euro Stoxx 600 Index Could Fall to Approximately 550 Points

Odaily According to Barclays Bank, if oil prices continue to hover around $100 per barrel and economic growth remains stagnant, the earnings per share (EPS) growth rate for European companies is likely to drop to the low single digits, and the Euro Stoxx 600 index could fall to around 550 points. Historical data shows that during periods of stagflation, sectors such as energy, utilities, and healthcare tend to perform better, while financials, telecommunications, and consumer sectors often lag. The bank stated in a report that although the energy intensity of the economy has decreased over time, economic growth remains at risk due to Europe's high dependence, up to 30%, on energy supplies from the Middle East. (Jin10)