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

Golden Ten Data reported on March 13 that European stock markets are set for a second consecutive week of decline, as the Iran war has sparked concerns about rising inflation and slowing economic growth, while worries about private credit are also quietly intensifying. Mining stocks led the decline, and bank stocks also underperformed. Since the beginning of this year, driven by optimistic expectations of increased fiscal spending and lower interest rates, European stock markets have outperformed US stock markets. However, in March, this trend was dragged down as market concerns grew over the potential stagflation shock caused by the Iran war. According to data cited by Bank of America from EPFR Global, European equity funds saw an outflow of $200 million 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 longer-lasting 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 underestimated; the longer the conflict drags on, the more concerned I am about the stock market."