Bank of America: EU's measures to cope with the energy price surge are beneficial to utility stocks.

Analysts at Bank of America wrote that the European Union seems to have ruled out taking aggressive measures to intervene in the energy market, which is positive for utility stocks in the region. They stated that the policy recommendations made to address the energy impact of conflicts in the Middle East seem to have been carefully considered, eliminating the downside risk for this sector. These analysts suggested that tax cuts on electricity, direct targeted support for the industry, and extending free carbon emission permits are the most likely policy interventions. They added that any measures affecting company profits would not result in losses for them. Amid a general rise in the stock market, a basket of European utility stocks increased by 0.4%.