Chart Of The Week   April 05 2023

Can European Equities Continue To Defy Banking Sector Risks?

The European stock market is at risk. The tightening in global credit conditions suggests that global growth will be soft over the coming months, posing a threat to highly cyclical European stocks. Moreover, unlike those for the S&P 500, European earnings expectations have not yet declined. This dichotomy creates a real danger for European stocks, which stand close to an all-time high.