Is the tide turning on European cyclicals?
STOXX 600 down 0.1%
China bounce loses steam
VW starts pay talks with unions
Nasdaq futures fall
Welcome to the home for real-time coverage of markets brought to you by Reuters reporters. You can share your thoughts with us at markets.research@thomsonreuters.com
IS THE TIDE TURNING ON EUROPEAN CYCLICALS?
With China's big stimulus measures expected to kick in, investors are not just upbeat about the prospect of the world's second-largest economy, but also other pockets of markets that are closely linked to it.
Among those are cyclical sectors in Europe - including autos, luxury goods and mining - that have borne the brunt of slowing Chinese demand and weak consumer confidence in the euro zone, making them some of the biggest laggards in 2024.
While the latest announcement from Beijing is unlikely to solve China's underlying issues, it improves the case for European cyclical stocks that have been hit particularly hard, Citi strategists said.
"European China proxies have seen downward revisions to 24E EPS of ~10% YTD, 5x larger than the overall market. And while fwd PEs have risen this year for the STOXX 600, our China-sensitive basket has derated ~7%. Any stabilisation in China-linked parts of the markets would help," said Citi strategist Beata Manthey.
Citi said extreme earnings downgrades in the sector and falling interest rates across the globe could set up cyclical stocks for gains, but they are more selective.
Citi upgraded basic resources sector to 'neutral', having recently upgraded autos. They however maintain an 'overweight' rating on tech and healthcare sectors.
(Sruthi Shankar)
*****
EARLIER ON LIVE MARKETS:
STOXX OFF TO MUTED START, SAP HIT CLICK HERE
CHINA BOOST SET TO FADE IN EUROPE CLICK HERE
AFTER CHINA'S STIMULUS SUGAR RUSH CLICK HERE
免责声明: XM Group仅提供在线交易平台的执行服务和访问权限，并允许个人查看和/或使用网站或网站所提供的内容，但无意进行任何更改或扩展，也不会更改或扩展其服务和访问权限。所有访问和使用权限，将受下列条款与条例约束：(i) 条款与条例；(ii) 风险提示；以及(iii) 完整免责声明。请注意，网站所提供的所有讯息，仅限一般资讯用途。此外，XM所有在线交易平台的内容并不构成，也不能被用于任何未经授权的金融市场交易邀约和/或邀请。金融市场交易对于您的投资资本含有重大风险。
所有在线交易平台所发布的资料，仅适用于教育/资讯类用途，不包含也不应被视为用于金融、投资税或交易相关咨询和建议，或是交易价格纪录，或是任何金融商品或非应邀途径的金融相关优惠的交易邀约或邀请。
本网站上由XM和第三方供应商所提供的所有内容，包括意见、新闻、研究、分析、价格、其他资讯和第三方网站链接，皆保持不变，并作为一般市场评论所提供，而非投资性建议。所有在线交易平台所发布的资料，仅适用于教育/资讯类用途，不包含也不应被视为适用于金融、投资税或交易相关咨询和建议，或是交易价格纪录，或是任何金融商品或非应邀途径的金融相关优惠的交易邀约或邀请。请确保您已阅读并完全理解，XM非独立投资研究提示和风险提示相关资讯，更多详情请点击 这里。
