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.
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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.
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