HSBC Cuts European Real Estate Sector to Underweight from Neutral
- Firm states that this sector is particularly sensitive to movements in bond yields and the recent rise in yields, albeit fromrecord lows, is a clear headwind
- Firm is also concerned that Large mutual fund holdings of real estate are high relative to history and earnings revisions have turned negative relative to the wider market
- Firm notes that in radar terms, the sector has slipped down and into the at risk bottom-right quadrant characterised by relative market optimism and negative shortterms signals