European Stocks Go Defensive as the Energy Crisis Returns
European equities are selling off because crude oil, natural gas and government bond yields are all signaling a prolonged energy supply disruption.
Share this:
European equities are selling off because crude oil, natural gas and government bond yields are all signaling a prolonged energy supply disruption. StoneX Market Analyst Fawad Razaqzada breaks down why equity investors have turned defensive, and what crude oil and the bond market are signaling underneath the move. With the Strait of Hormuz still closed and natural gas prices near their highs for the year, the risk of prolonged energy supply disruption remains significant for a region reliant on imported energy. Rising government bond yields also raise the opportunity cost of holding growth stocks.
This content was created by an affiliate of FOREX.com and represents the views and opinions of the author/speakers, not the views and opinions of FOREX.com, StoneX Group Inc., or its subsidiaries. The content has not been independently reviewed by FOREX.com.
Related tags:
Latest market news
Open an account in minutes
Experience award-winning platforms with fast and secure execution, and enjoy tight spreads from 0.5 pts on FX and 0.3 pts on indices.
Economic calendar
Web Trader platform
Our sophisticated web-based platform is packed with features.
Related articles
Gold weekly outlook: XAU/USD holds above $4,000 despite strong US jobs data
Gold has held above $4,000 despite a much stronger-than-expected October jobs report. Fawad Razaqzada explains why lower yields and the tech sell-off have supported the metal, and why next week's US CPI could decide its next move.
Australian Dollar Short-term Outlook: AUD/USD 3% Plunge Puts Multi-Month Range at Risk 11 6 2026
A sharp equity-led selloff has driven AUD/USD toward critical June-low support, with strong NFP data adding pressure ahead of next week’s U.S. CPI.
Nasdaq 100 forecast: Tech stocks rebound but AI concerns linger
The Nasdaq 100 rebound has run into former support as fears over AI regulation and spending linger. Fawad Razaqzada explains why he maintains a cautious forecast and where the key levels sit.
This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.
StoneX Financial Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the StoneX group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), StoneX Financial Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact StoneX Financial Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.
In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither StoneX Financial Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.
StoneX Financial Pte. Ltd. is not under any obligation to update this report.
Trading CFDs carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit www.forex.com/en-sg/terms-and-policies for the complete Risk Disclosure Statement.