9/25/2023 0 Comments Money control pro"We do still like some of the cyclical sectors, particularly banks. Opportunities in a bleak market Despite the bleak outlook for the market, UBS' Fowler sees some opportunities. The bank's strategists expect an 18% decline for the Stoxx Europe 600 index to 380 by the first quarter of next year - if global PMIs continue to decline as expected. "Given that monetary policy works with a lag, the impact of the most aggressive monetary tightening cycle in four decades is only just now starting to show up in the data," said BofA strategists led by Sebastian Raedler in a note to clients on July 28. The Wall Street bank's strategists noted that the global growth acceleration behind the recent rally in European stocks appears to be fading. A bigger decline Bank of America supports Fowler's analysis. "The beats are the lowest we've seen since before Covid," he said, suggesting a gradual weakening of the health of companies in Europe. The strategist highlighted that although first-quarter earnings reported in April were quite robust, the second quarter has shown signs of weakness. However, Fowler said, cracks have begun to show. Even as manufacturing sector activity declined in the euro zone, growth in the bloc's dominant services industry kept stocks afloat. The stock market has been range-bound, according to him, due to the disparity between the services and manufacturing sectors in Europe. "We've been in a range of 440-450, up to 470, where we are at the moment, for month after month after month," Fowler said. Yet, stock markets in the continent have continued to hold up so far. The decline was also widespread, with Germany and France, the two largest economies in the euro zone, both experiencing contraction. In July, the flash Composite Purchasing Managers' Index (PMI) for the euro area fell to 48.9, down from June's 49.9 - below the 50 mark that separates growth from contraction. It was quite firm in May, and for three months in a row, we've seen service sector new order weakness," Fowler told CNBC's " Squawk Box Europe ". Why will stocks tumble? A significant factor behind the poor sentiment is the worsening outlook for new orders in many of Europe's service sectors, according to Gerry Fowler, head of European equity strategy at UBS.STOXX 1Y line "The 'new orders' outlook for many of the service sectors in Europe seems to have deteriorated quite rapidly. And Bank of America's strategists are forecasting an even steeper decline of 18.8% to 380 for the index by the first quarter of next year. Strategists at UBS expect the Stoxx Europe 600 index to decline by 12.5% to 410 by the end of the year from its current level of 468. Investment banks are bearish about European stocks because of a rapid deterioration in economic data. Personal Loans for 670 Credit Score or Lower Personal Loans for 580 Credit Score or Lower iOS users can subscribe via website and use the same ID on their Apple device.Best Debt Consolidation Loans for Bad Credit This offer can be availed from Moneycontrol website and Moneycontrol’s Android App. If you are not a part of the PRO family yet, click here to subscribe today! Subscribers receive exclusive trading recommendations, curated market data, independent equity analysis, actionable investment ideas, nuanced takes for making sense of the biggest business events and on macro, corporate and policy actions from some of India’s most experienced financial journalists and top experts as well as practical insights from market gurus. Since its launch, Moneycontrol Pro has relentlessly innovated to offer users a slew of premium services such as seamless access to technical analysis, trading ideas from a hand-picked team of experts, a daily comprehensive newsletter and detailed weekly wrap that makes sense of the biggest financial events. With 330,000 subscribers, Moneycontrol Pro is ranked third in Asia, said a report from the International Federation of Periodical Publishers. Moneycontrol Pro, the premium offering from Moneycontrol, is the only Indian publisher ranked in the top 20 global digital news subscription providers. Visit Moneycontrol Subscription page and apply coupon code PRO365 on the 1-year plan to avail this offer. Stay tuned for new contests and giveaways this month!Įnjoy seamless ad-free financial content across platforms with Moneycontrol PRO for a year at just Re 1/- per day. Since its inception in April 2019, Moneycontrol Pro has constantly strived to add value to its offerings not only though premium content, but also exclusive deals for subscribers.
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