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Barclays: If oil prices remain around $100, the Euro Stoxx 600 index will fall to around 550 points
Svmuu News: Barclays forecasts that if oil prices remain around $100 per barrel and economic growth remains stagnant, the earnings per share (EPS) growth rate of European companies will likely drop to the low single digits, and the Stoxx Europe 600 index will fall to around 550 points. Historical data shows that during periods of stagflation, the energy, utilities, and healthcare sectors tend to outperform, while the financial, telecommunications, and consumer sectors often lag. The bank noted in a report that although the energy intensity of the economy has declined over time, economic growth remains at risk because Europe relies on energy supplies from the Middle East for as much as 30% of its needs. (Jin Shi)
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