LIVE MARKETS-Europe's mixed bag

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EUROPE'S MIXED BAG

After a strong start to the year, this week's events in the Middle East have reined in some of the strength in European shares.

The Euro STOXX 50 .STOXX50E went negative for the year on Tuesday (although has crept back into positive territory on Wednesday) with European markets particularly sensitive to rising energy prices.

"We find the slices of the European market which are most negatively correlated to gas price hikes are DAX, Consumer Discretionary, Cyclicals and Small/Mid-caps," Goldman Sachs equity strategist Sharon Bell says.

"Meanwhile, those most insulated are Energy, Utilities, Renewables and Defensives."

Most major indexes are now flat to slightly higher on the year after a bounce on Wednesday, with Germany's DAX .GDAXI, the darling of 2025, underperforming. Meanwhile Britain's FTSE .FTSE is the region's top-performing major index.

"FTSE 100 with high weights in commodity-sectors and international/defensive sectors is relatively well-placed," Bell notes.

More broadly, Goldman Sachs analysts are leaving their EPS growth and price targets unchanged for Europe, calling for the STOXX 600 .STOXX index to rise to 625 in 12 months, implying about 2.3% upside from its current level.

(Samuel Indyk)

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STOXX TAKES A BREATHER, HELPED BY TECH, DEFENSIVES CLICK HERE

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