European stock markets are better positioned to weather elevated energy prices than the broader economy, according to strategists at Goldman Sachs.

A research team led by Guillaume Jaisson pointed out that the earnings of the Euro Stoxx 600 index have historically moved in tandem with energy costs. Their analysis of data stretching back to 1990 reveals that a 10% rise in Brent crude oil prices typically corresponds to a roughly 2.4% uplift in European corporate earnings, with the bulk of these gains concentrated in commodity-linked sectors.

In the strategists’ report, they noted that utilities, financials, and certain chemical companies could also benefit from higher inflation, stronger pricing power, and rising interest rates.