Holtz observed, "EUROPEAN BANKING HAS SUFFERED. WE HAVE SEEN A LOT OF STOCK DECREASING ON EUROPEAN BANKING." Stagflation fears and potential interest rate hikes in Europe are negatively impacting the banking sector's performance and outlook. Avoid due to downward pressure on stocks and macroeconomic headwinds specific to European banks. Rapid de-escalation of the Iran conflict or stronger-than-expected economic recovery in Europe.