Deutsche AM Lifts Bunds to Overweight; EU Stocks Cut to Neutral
(Bloomberg) -- Deutsche Asset Management upgrades bunds and periphery bonds to overweight after the ECB extended its QE purchases, analysts write in the April CIO newsletter.
- The scope for further rate cuts looks increasingly limited with changes to the ECB’s QE more probable, supporting a broadly positive view on all fixed-income products in the euro zone that have some credit risk, Joe Benevento and Joern Wasmund, Global Co-Heads of Fixed Income/Cash write
- Deutsche AM cut euro zone and German equities to neutral, to reflect tensions including the migration crisis and radicalization of the political landscape, as well as “Brexit” risks
- Also downgrades financial stocks to neutral as the introduction of negative rates and the flat U.S. yield curve look set to weigh heavily on the sector
Alert:
HALISTER1Source: BFW (Bloomberg First Word)
Tickers 2539Z GR (European Central Bank)
People Joern Wasmund (Deutsche Bank AG)
Joseph Benevento (Deutsche Bank AG)
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