Barclays: If oil prices remain around 100 dollars, the European Stoxx 600 index will fall to about 550 points

Barclays Bank expects that if oil prices remain around $100 per barrel and economic growth stays stagnant, the earnings per share (EPS) growth rate for European companies is likely to drop to a lower single-digit level, with the STOXX Europe 600 index falling to about 550 points.

Historically, during periods of stagflation, the energy, utilities, and healthcare sectors tend to perform better, while financial, 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, the growth of the economy still faces risks, as Europe relies on Middle Eastern energy supplies for as much as 30%.