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20 Apr 2015
Broader European trends encouraging – BAML
FXStreet (Barcelona) - The BofA-Merrill Lynch Equity Strategy Team, shares their view on the European equity market, and further note that European flows are aping Japanese flows, which caused late-spring volatility in the Japanese markets.
Key Quotes
“Our European equity strategists, James Barty & Manish Kabra, believe European stocks are underpinned by economic recovery, low rates and the prospect of M&A.”
“James & Manish recommend adding exposure to European oils & banks (both at 30-year relative lows) and rotate out of healthcare, staples & autos.”
“Still, Barty is tactically cautious owing to strong recent performance and renewed Greek fears.”
“An abrupt reversal in European rates and/or the Euro could quickly unnerve European equities near-term. And flows into Europe are starting to decelerate a couple of months after the ECB QE program started, an exact repeat of events which caused late-spring volatility in Japanese markets in 2013.”
Key Quotes
“Our European equity strategists, James Barty & Manish Kabra, believe European stocks are underpinned by economic recovery, low rates and the prospect of M&A.”
“James & Manish recommend adding exposure to European oils & banks (both at 30-year relative lows) and rotate out of healthcare, staples & autos.”
“Still, Barty is tactically cautious owing to strong recent performance and renewed Greek fears.”
“An abrupt reversal in European rates and/or the Euro could quickly unnerve European equities near-term. And flows into Europe are starting to decelerate a couple of months after the ECB QE program started, an exact repeat of events which caused late-spring volatility in Japanese markets in 2013.”