European stocks head for two-week losing streak amid Iran war impact

格隆汇 March 13丨European stock markets are set for their second consecutive week of declines, as the Iran war has sparked concerns about rising inflation and slowing economic growth, while worries about private credit are quietly intensifying. Mining stocks are leading the decline, and bank stocks are also underperforming. Since the beginning of this year, driven by increased fiscal spending and optimistic expectations of falling interest rates, European stock markets have outperformed US stock markets. However, in March, as market concerns about the potential stagflation shock from the Iran war grew, this trend has been dragged down. According to data cited by Bank of America from EPFR Global, European equity funds saw a $200 million outflow in the week ending Wednesday, marking the first net outflow in six weeks. Rhynhardt Roodt, Chief Investment Officer of Equities at Ninety One, said: "The market is pricing in the risk of a prolonged conflict, which will have a greater impact on Europe than on the US. If oil prices remain above $100, current inflation expectations may still be too low; the longer the conflict drags on, the more concerned I am about the stock market."