Buy Dips in European Stocks; Stay Bullish Over 12-18 Mos.: Citi
2014-08-08 06:15:28.952 GMT
By Tim Barwell
Aug. 8 (Bloomberg) -- European equities have sold off
hardest due to exposure to risks, biggest regional P/E re-rating
since mid-2012, Citi says in strategy note.
* Citi economists continue to back a modest and progressive
European and global economic recovery in the next 2-3 yrs;
highlight 4 key risks
* Russia spillovers, other geopolitical issues, sluggish
pace of world trade growth, possibility of China
slowdown
* Sharp escalation probably required to impact ECB policy
* European equities have de-rated modestly in absolute
terms, still very cheap relative to credit and
government bonds
* Stay bullish on European equities over the next 12-18
months, continue to buy dips
* NOTE (yday): Europe Stocks Fall as Munich Re Misses, Draghi
Warns on Ukraine
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To contact the reporter on this story:
Tim Barwell in London at +44-20-7073-3512 or
tbarwell@bloomberg.net
To contact the editor responsible for this story:
James Ludden at +44-20-7673-2645 or
jludden@bloomberg.net
2014-08-08 06:15:28.952 GMT
By Tim Barwell
Aug. 8 (Bloomberg) -- European equities have sold off
hardest due to exposure to risks, biggest regional P/E re-rating
since mid-2012, Citi says in strategy note.
* Citi economists continue to back a modest and progressive
European and global economic recovery in the next 2-3 yrs;
highlight 4 key risks
* Russia spillovers, other geopolitical issues, sluggish
pace of world trade growth, possibility of China
slowdown
* Sharp escalation probably required to impact ECB policy
* European equities have de-rated modestly in absolute
terms, still very cheap relative to credit and
government bonds
* Stay bullish on European equities over the next 12-18
months, continue to buy dips
* NOTE (yday): Europe Stocks Fall as Munich Re Misses, Draghi
Warns on Ukraine
For Related News and Information:
First Word scrolling panel: FIRST<GO>
First Word newswire: NH BFW<GO>
To contact the reporter on this story:
Tim Barwell in London at +44-20-7073-3512 or
tbarwell@bloomberg.net
To contact the editor responsible for this story:
James Ludden at +44-20-7673-2645 or
jludden@bloomberg.net