Bank of America: European stock markets may fall by another 10% due to the situation in Iran.

A strategist at Bank of America has stated that with the ongoing Iran conflict, the Stoxx Europe 600 index may fall further by 10%, as they believe the current market pricing is underestimating the risk of demand destruction. These strategists remain bearish on European stocks, as European stock markets have already fallen 8.5% from their February highs. "We believe that the current market pricing underestimates the possibility of rising energy prices squeezing consumer purchasing power, leading to potential demand destruction," they wrote.