European markets face volatility warnings amid regional credit growth

In North Macedonia, credit activity showed significant growth in July 2026. According to data from the National Bank, total monthly credits increased by 0.8%, with a yearly rise of 13.3%. While corporate deposits fell by 0.4% monthly due to a decline in the corporate sector, household deposits grew by 1.6% monthly and 11.1% annually. Housing loans specifically saw a strong yearly increase of 16.6%.

In the broader European market, Bank of America has issued a warning regarding European equities. The bank predicts that the Stoxx 600 index could undergo a correction of approximately 10%, potentially dropping to 580 points by the second quarter of 2027. This outlook is driven by concerns that the market has already priced in overly optimistic scenarios for corporate earnings and artificial intelligence-driven growth, while economic momentum in the Eurozone may weaken.