Sector Dashboard

Also Interesting

• Among CEE countries, only Croatia is thinking about early euro adoption
• The euro area bank lending survey
• China and the US soon to reach agreement on trade issues?

Overview

After a bumpy start to 2019 we are now seeing a risk asset rally and market gains in light of trade talk progress between the US and China. In an environment where unemployment remains low and wages rise, and consumer debt levels and defaults do not become a problem, equities could return double digits this year, favouring cyclicals over defensives. We continue to favour the US over the rest of the world, particularly given the current risks in the European market. Therefore, we have limited our Industrials picks to the US and World and stuck with Health Care in Europe. We introduce Technology as a sector pick, reflecting the potential for structural growth alongside more reasonable valuations in Technology.