Live Markets: "Are we on the precipice of a narrative shift?"

Volvo Car AB

27/02/2024 11:12

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    "ARE WE ON THE PRECIPICE OF A NARRATIVE SHIFT?"
    Strong US job growth and inflation have led markets to
rethink their optimistic rate-cut bets to the point that some
are wondering whether the prevailing market narrative might just
be about to change.
    "Are we on the precipice of a narrative shift?", writes
UBS's Gerry Fowler in his latest strategy piece where he looks
into the implications for European stocks of a "higher for
longer" scenario in the United States.
    "Ongoing improvement in leading indicators and economic
surprise present the possibility that if February data is
equally as strong, a 'higher for longer' narrative will again
take hold and drive markets in the coming weeks," he notes.
    Fowler sees cyclicals as "dominant beneficiaries" in such a
shift, screening out companies that might be most sensitive to
rising breakevens, real yields and growth expectations.
    The list has big representation of banks like Spain's
Caixabank  CABK.MC , ABN Amro  ABNd.AS  and Commerzbank
 CBKG.DE , and materials companies such as London-listed
Glencore  GLEN.L  and steel group ArcelorMittal  MT.LU . 
    There are also some energy plays like Tenaris  TENR.MI  and
one auto stock, Volvo Car  VOLCARb.ST .
    In the snapshot, the full UBS list:
    (Danilo Masoni)
    *****
     
    
    FOR TUESDAY'S OTHER LIVE MARKETS POSTS:
    RATE RE-PRICING, MANUFACTURING IMPROVEMENT TO SUPPORT RISK
CLICK HERE
    NEW PEAK FOR THE DAX IN UNEVENTFUL START CLICK HERE
    EUROPEAN FUTURES EDGE LOWER; MORE EARNINGS OUT CLICK HERE
    STOCKS HOLD FAST IN WAIT FOR INFLATION DATA CLICK HERE

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Higher for longer EU plays    https://tmsnrt.rs/49Rib2q
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