Live Markets: Forget playing it safe, Europe is the next big money magnet, UBS says
14/11/2025 15:09
Main US indexes red; Dow down >1%
Financials weakest S&P 500 sector; Utilities sole gainer
Euro STOXX 600 index falls >1%
Dollar up slightly; crude rallies >2%; gold, bitcoin both down >2%
US 10-Year Treasury yield edges up to ~4.12%
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FORGET PLAYING IT SAFE, EUROPE IS THE NEXT BIG MONEY MAGNET, UBS SAYS
Europe's investment landscape could furnish several opportunities across defense, technology, financials and other industries, analysts at UBS wrote, underscoring the region's growing allure as a destination for capital.
Ambitious structural reforms and a rebound in manufacturing are laying the foundation for a more resilient and broad-based investment opportunity, the brokerage said.
"We see the most compelling investment opportunities in European companies that are positioned to benefit from both global trends, such as artificial intelligence, power and resources, and longevity and the region's ambitious structural reforms," said Sacha Holderegger, equity sector strategist at UBS.
The commentary highlights the alternative avenues investors have to put capital to work at a time when some fear U.S. valuations have become too stretched. UBS's "Six Ways to Invest in Europe" framework spotlights single-stock opportunities across key sectors, giving investors diversified access to the region's renewal.
ASML ASML.AS, BAE Systems BAES.L, BMW BMWG.DE, BP PLc BP.L and AstraZeneca AZN.L could be among the winners, the brokerage said.
Defensive sectors and companies with stable earnings, such as Admiral Group ADML.L, Allianz ALVG.DE, and Barclays BARC.L, should also outperform in volatile environments, UBS added.
"We believe market participants are over-discounting cyclical fears at the expense of structural growth drivers," the analysts said.
(Akriti Shah)
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