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

Odaily News Barclays Bank predicts that if oil prices persistently 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 low single-digit levels, and the Euro Stoxx 600 index could fall to around 550 points. Historical data shows that during periods of stagflation, the energy, utilities, and healthcare sectors 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 reliance on Middle Eastern energy supplies, which accounts for as much as 30%. (Jin10)