Barclays: Europe Stocks Vulnerable to $100 Oil

Barclays warns sustained oil price above $85‑90 per barrel could push European earnings growth to near zero and pressure valuations.
EPS consensus for FY26 stays 13% YoY, but stripping auto base effects reduces growth to 8‑9%; Barclays cuts its forecast to 6%.
Barclays trims Eurozone GDP to 0.8% and UK GDP to 0.7%, expecting two ECB rate hikes amid rising stagflation risk.
Valuations de‑rated 7% to 14.4x P/E; SXXP could fall to ~550 if oil stays above $100, with base‑case target at 620.