Barclays: If oil prices remain around $100, the Euro Stoxx 600 index will drop to about 550 points
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Golden Ten Data reported on March 11 that Barclays Bank expects that if oil prices remain around $100 per barrel and economic growth stays stagnant, the earnings per share (EPS) growth rate of European companies is likely to drop to a low single-digit level, and the STOXX Europe 600 Index will fall to about 550 points. According to historical data, during periods of stagflation, the energy, utilities, and healthcare industries perform better, while the financial, telecommunications, and consumer sectors tend to lag behind. The bank stated in a report that although the energy consumption intensity of the economy has declined over time, economic growth still faces risks because Europe relies on Middle Eastern energy supplies for as much as 30%.
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