1130 GMT - Europe's Stoxx 600 is flat on its pre-U.S.-Iran war level--even as growth on the continent picks up--largely because of rising borrowing costs, Bank of America's Sebastian Raedler and Thomas Pearce write. The surge in 10-year Treasury yields--the discount rate for global equities--has dragged on the Stoxx 600, even as the continent's earnings-per-share jump, the analysts say. Despite strong growth, Bank of America is negative on European equities given the risks of a slowing AI buildout, high energy costs and higher-still borrowing rates, they say. The Stoxx 600 could fall as much as 10% if risk factors combine, they say. The index rises 0.8%, and is up 6.7% for the year.
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