Barclays says energy prices must fall for stocks to keep rising
Updated
Updated · MarketWatch · May 6
Barclays says energy prices must fall for stocks to keep rising
6 articles · Updated · MarketWatch · May 6
European stocks are up 10% from their March low, but Barclays strategist Emmanuel Cau says further gains are hard to justify without a sharp oil reversal.
The bank said equities are increasingly detached from oil and bond market signals, while shrinking energy inventories and $100-plus crude raise the risk of demand destruction and earnings downgrades in Europe.
Barclays said the rally has been driven by AI enthusiasm, FOMO and belief in a "Trump put", and still prefers US equities over Europe because of stronger earnings momentum and energy independence.
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