Bears Need to Back Global Recession, Citi Says, Doesn’t See One
2015-08-25 06:35:30.95 GMT
By Cormac Mullen
(Bloomberg) -- Citi European equity strategists say likely
to be significant volatility near-term but to turn bearish, need
to expect a global recession, otherwise correction should
provide another buying opportunity for investors.
* Says its economists see many risks but recession is not base
case; this suggests investors back “leadership trends”
such as div. momentum and de-equitisation
* Highlights European banks, Europe ex-UK and Japan as an
example of these trends
* For Europe says regional backdrop appears supportive for
equities
* Says growth is key, if get growth then likely to get a
market re-rating, continues to believe a reverse of this
more likely than a market that trades sideways
* NOTE: DAX Is ‘Sharp Falling Knife’, Stay Away From It,
SocGen Says
For Related News and Information:
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First Word newswire: NH BFW<GO>
To contact the reporter on this story:
Cormac Mullen in Dublin at +353-1-523-9526 or
cmullen9@bloomberg.net
To contact the editors responsible for this story:
Gaurav Panchal at +44-20-3525-0511 or
gpanchal2@bloomberg.net
2015-08-25 06:35:30.95 GMT
By Cormac Mullen
(Bloomberg) -- Citi European equity strategists say likely
to be significant volatility near-term but to turn bearish, need
to expect a global recession, otherwise correction should
provide another buying opportunity for investors.
* Says its economists see many risks but recession is not base
case; this suggests investors back “leadership trends”
such as div. momentum and de-equitisation
* Highlights European banks, Europe ex-UK and Japan as an
example of these trends
* For Europe says regional backdrop appears supportive for
equities
* Says growth is key, if get growth then likely to get a
market re-rating, continues to believe a reverse of this
more likely than a market that trades sideways
* NOTE: DAX Is ‘Sharp Falling Knife’, Stay Away From It,
SocGen Says
For Related News and Information:
First Word scrolling panel: FIRST<GO>
First Word newswire: NH BFW<GO>
To contact the reporter on this story:
Cormac Mullen in Dublin at +353-1-523-9526 or
cmullen9@bloomberg.net
To contact the editors responsible for this story:
Gaurav Panchal at +44-20-3525-0511 or
gpanchal2@bloomberg.net