Regional Equity Strategy

We are up 1.5% on our bullish Spanish small caps view since it was entered in our asset class strategy on January 9 (played through the IBEXS index), and see potential for further gains over the next few months, due to an attractive technical picture and the index's exposure to improving eurozone demand.

  • With valuations on Turkey's Borsa Istanbul equity index at multi-year lows, we see the potential for a short-term rally. However, we believe the trend will remain one of weakness over the coming months due to a confluence of macroeconomic and political risk in 2014.

  • Our eurozone over US stocks view (played via the ratio of MSCI US to MSCI EMU) has performed well in recent trading on the back of a more pronounced retracement in US markets. Although up only 2.4% since initiation in August last year, we believe the recovery in eurozone growth in H114 will help bring eurozone stock valuations towards US levels.

  • Potential For Bullish Break, Although Business Environment Concerns Linger
    Hungary - BUX Equity Index, Daily (LHS) and Monthly (RHS)
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    This article is tagged to:
    Sector: Country Risk
    Geography: Europe, Austria, Czech Republic, Germany, Spain, Hungary, Italy, Poland, Romania, Russia, Turkey

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