Latest news with #EuropeanEquities
Yahoo
30-06-2025
- Business
- Yahoo
FX-hedged stocks seen outperforming as euro rises, says Morgan Stanley
-- Morgan Stanley analysts said in a note Monday that as the U.S. dollar's 15-year bull run appears to be ending, they see a clear opportunity for European equities with advanced foreign exchange (FX) hedging strategies to outperform. The bank highlighted how companies that manage currency risks effectively are likely to benefit as the euro gains ground. 'We find companies with advanced FX hedging tend to outperform and expect material EUR strength beneficiaries to continue breaking to new highs,' Morgan Stanley analysts wrote, citing proprietary screens that identify such stocks. The report highlights the unique complexity of FX exposure in Europe, where only about 44% of MSCI Europe revenues are generated domestically. 'FX implications extend well below the surface of regional revenue exposures,' the analysts explained, noting the diversity of local-to-local strategies, multiple home currencies, including EUR, GBP, NOK, and CHF, and mismatches across costs, balance sheets, and cash flows. Morgan Stanley projects a further weakening of the dollar, forecasting EUR/USD at 1.25 and GBP/USD at 1.45 by mid-2026, with bull-case scenarios of 1.30 and 1.51. 'These currency moves are likely to have implications for corporate and investor FX hedging strategies,' the bank said. Morgan Stanley collaborated with FX strategists and sector analysts to assess FX exposure across roughly 550 European companies, aiming to reduce subjective interpretation. 'A core part of our process has been smoothing out subjectivity, creating an apples to apples playing field,' the analysts noted. As FX dynamics gain investor attention, Morgan Stanley believes companies that proactively hedge are well-positioned to ride the euro's rise and outperform their less-prepared peers. Related articles FX-hedged stocks seen outperforming as euro rises, says Morgan Stanley MDA Space stock rises after securing maritime surveillance contract extension Citi upgrades Linde on project wins and productivity gains Sign in to access your portfolio
Yahoo
24-06-2025
- Business
- Yahoo
European Equities Traded in the US as American Depositary Receipts Rise in Tuesday Trading
European equities traded in the US as American depositary receipts were higher late Tuesday morning, Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
20-06-2025
- Business
- Yahoo
BofA lifts STOXX 600 annual target to 530 points
(Reuters) -BofA Global Research on Friday raised its year-end target for the STOXX 600 index to 530 from 500 on resilience in global growth following a U.S.-China trade truce. European equities remain close to all-time highs despite the global trade war and escalating tensions in the Israel-Iran conflict, the Wall Street brokerage said. "The main reason for the resilience, is that these events (Israel-Iran conflict, trade war) have not yet translated into a clear-cut weakening in global growth," BofA said, maintaining its "negative" stance on the region's equities. The brokerage's current target for the pan-European benchmark index still implies a nearly 1.1% downside to its Thursday close of 535.86. While a trade deal between the U.S. and China as well as a benign May U.S. inflation report have brought some relief to financial markets, pressures from tariffs and escalating tensions in the Middle East are expected to weigh on global economic growth. BofA upgraded the European mining sector to "overweight" from "marketweight", citing attractive valuations after significant underperformance, with support from a weaker dollar. The brokerage downgraded airlines to "underweight" from "marketweight", on potential risks from higher oil prices if Middle East tensions escalate.
Reuters
20-06-2025
- Business
- Reuters
BofA lifts STOXX 600 annual target to 530 points
June 20 (Reuters) - BofA Global Research on Friday raised its year-end target for the STOXX 600 (.STOXX), opens new tab index to 530 from 500 on resilience in global growth following a U.S.-China trade truce. European equities remain close to all-time highs despite the global trade war and escalating tensions in the Israel-Iran conflict, the Wall Street brokerage said. "The main reason for the resilience, is that these events (Israel-Iran conflict, trade war) have not yet translated into a clear-cut weakening in global growth," BofA said, maintaining its "negative" stance on the region's equities. The brokerage's current target for the pan-European benchmark index still implies a nearly 1.1% downside to its Thursday close of 535.86. While a trade deal between the U.S. and China as well as a benign May U.S. inflation report have brought some relief to financial markets, pressures from tariffs and escalating tensions in the Middle East are expected to weigh on global economic growth. BofA upgraded the European mining sector to "overweight" from "marketweight", citing attractive valuations after significant underperformance, with support from a weaker dollar. The brokerage downgraded airlines to "underweight" from "marketweight", on potential risks from higher oil prices if Middle East tensions escalate.
Yahoo
20-06-2025
- Business
- Yahoo
Return of Risk Appetite Into European Equities: Nandra
"I think we are seeing a return of risk appetite back into European equities that's over that kind of medium-to-long-term," Jupiter Asset Management Equities Head Kiran Nandra tells Bloomberg Television. She also comments on the oil market in the current geopolitical climate, as tensions between Iran and Israel continue. "We'd be looking at companies which have those much more resilient supply chains that kind of deal with the kind of higher oil prices."
