Live Markets: Barclays names three themes to watch for Q2

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21/04/2026 11:18

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BARCLAYS NAMES THREE THEMES TO WATCH FOR Q2

Equity markets have been pricing in a lot of optimism, be it on a lasting conclusion to the war in the Middle East and/or expectations about first-quarter earnings.

      This is despite ongoing energy supply disruptions stemming from a closure of the Strait of Hormuz, which means the economic cost of the war is still highly uncertain.

Barclays has picked three equity buckets that they believe could offer tactical opportunities in the second quarter, given the current market backdrop.

1/ Oversold quality - these are "overweight" rated stocks that have materially underperformed year-to-date, where they believe the overweight thesis has become more compelling. Examples include Rheinmetall RHMG.DE, DSV DSV.CO and Deutsche Telekom DTEGn.DE.

2/ Downside earnings risk - these are "equal weight" or "underweight" rate stocks that have downside earnings risk. Examples include: Nordea NDAFI.HE, Remy Cointreau RCOP.PA and Lufthansa LHAG.DE.

3/ Most defensive - these are "overweight" rated stocks that Barclays analysts believe are most defensive in the current market backdrop. Examples include Schneider Electric SCHN.PA, Novonesis NSISb.CO and ASML ASML.AS.

(Samuel Indyk)

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EARLIER ON LIVE MARKETS

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Barclays oversold quality https://fingfx.thomsonreuters.com/gfx/mkt/znpnmnyggvl/Pasted%20image%201776765503907.png

Barclays downside earnings risk https://fingfx.thomsonreuters.com/gfx/mkt/gdvzabzglpw/Pasted%20image%201776765562980.png

Barclays most defensive https://fingfx.thomsonreuters.com/gfx/mkt/jnvwrbqonpw/Pasted%20image%201776765637549.png