Barclays Forecasts Short Squeeze in Europe Post-Ceasefire

Barclays analyst says US‑Iran ceasefire removes worst‑case scenario, opening path for a powerful short squeeze in European equities.
Hedge fund de‑risking, falling CTA exposure and favorable April seasonality could trigger a near‑term beta rally despite bearish sentiment.
Barclays cuts 2026 European earnings growth forecast to 6% (from 8%) assuming $85 oil price; $100+ oil would flatten growth.
Analyst favors cyclicals, banks and rate‑sensitive sectors short‑term, while longer‑term tilt shifts to Industrials, Materials and Technology.