Although the overall performance of Europe's second-quarter earnings report was strong after the outbreak of the war in Iran, and profit expectations were raised later, rising global energy prices are disrupting European stock market trends. At the beginning of this week, Brent crude oil was less than $100 per barrel, and overnight it was close to 110 US dollars/barrel. The European Stoxx 600 Index is expected to record its worst weekly performance since April. It closed yesterday and fell below the 100-day moving average for the first time since May. The European stock market's performance so far this month compared to the global market has repeated the trading characteristics of the early outbreak of the conflict: the European stock market outperformed the US stock market and the Asia-Pacific stock market. Europe's technology sector accounts for a relatively low share and is unable to hedge against the impact of rising energy costs. The weakening of the consumer goods service sector and retail stocks stemmed from a decline in residents' purchasing power; the decline in the healthcare sector was more a factor in Novartis's individual stocks. Industrial, construction, and aviation companies have been hit by rising oil prices, and energy has raised their investment costs. The high-yield environment dragged down the downside of real estate stocks. The banking and energy sector has been an important support for the European stock market until now, but in the current macro environment, its support is not strong enough to offset the decline in the market. Although there are reports that Iran and the Gulf countries plan to push for an agreement related to the Strait of Hormuz, leading to a slight drop in crude oil prices today, it is unlikely that energy prices will drop drastically in the short term. If energy prices continue to be high, it will be difficult for European companies to achieve profit targets after the second-quarter earnings report rises.

Although the overall performance of Europe's second-quarter earnings report was strong after the outbreak of the war in Iran, and profit expectations were raised later, rising global energy prices are disrupting European stock market trends. At the beginning of this week, Brent crude oil was less than $100 per barrel, and overnight it was close to 110 US dollars/barrel. The European Stoxx 600 Index is expected to record its worst weekly performance since April. It closed yesterday and fell below the 100-day moving average for the first time since May. The European stock market's performance so far this month compared to the global market has repeated the trading characteristics of the early outbreak of the conflict: the European stock market outperformed the US stock market and the Asia-Pacific stock market. Europe's technology sector accounts for a relatively low share and is unable to hedge against the impact of rising energy costs. The weakening of the consumer goods service sector and retail stocks stemmed from a decline in residents' purchasing power; the decline in the healthcare sector was more a factor in Novartis's individual stocks. Industrial, construction, and aviation companies have been hit by rising oil prices, and energy has raised their investment costs. The high-yield environment dragged down the downside of real estate stocks. The banking and energy sector has been an important support for the European stock market until now, but in the current macro environment, its support is not strong enough to offset the decline in the market. Although there are reports that Iran and the Gulf countries plan to push for an agreement related to the Strait of Hormuz, leading to a slight drop in crude oil prices today, it is unlikely that energy prices will drop drastically in the short term. If energy prices continue to be high, it will be difficult for European companies to achieve profit targets after the second-quarter earnings report rises.