Barclays: If oil prices remain around $100, the European Stoxx 600 Index will drop to approximately 550 points

Mars Finance reports 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 fall to the low single digits, and the Euro Stoxx 600 index could drop to about 550 points. Historically, during stagflation periods, energy, utilities, and healthcare sectors tend to perform better, while financials, telecommunications, and consumer sectors often lag behind. The bank stated in a report that although the energy consumption intensity of the economy has decreased over time, economic growth still faces risks due to Europe’s high dependence—up to 30%—on Middle Eastern energy supplies.