BofA Warns European Stocks Risk Momentum Crash as MCI Plunges to 17

BofA flagged heightened crash risk for European equities after its Momentum Conviction Indicator fell to 17, well below the 30 danger threshold, potentially triggering algorithmic selling over the next 4–8 weeks. The warning follows Bernstein’s upbeat sector review naming Ryanair and IAG as top outperformers amid rising fuel costs and Middle East disruptions. Ryanair reported strong FY2026 results with €2.26B profit (+40%) and 80% fuel hedged at $67/barrel, while broader STOXX Europe 600 trades at 13.5x forward earnings with only 4.5% EPS growth expected.