Lates News

J.P. Morgan strategists said that European stocks, which have underperformed recently, will see another buying opportunity in the next 1-2 months. However, before that, the risk of stagflation needs to be "resolved," the team led by Mislav Matejka wrote in their report. German fiscal expansion is a "clear support," trade negotiations have made progress, and natural gas prices remain low, the strategists said. "The defense sector may see profit-taking, but we recommend being structurally bullish on this sector. Over the past few months, we have maintained a tactical neutral stance on the eurozone relative to the US, but from a 1-2 year perspective, we suggest taking advantage of the pullback in SX5E to increase positions."