HALISTER1: OPEC-Fueled Buoyancy Is an Opportunity to Trim Risk: Commerzbank

OPEC-Fueled Buoyancy Is an Opportunity to Trim Risk: Commerzbank

(Bloomberg) -- OPEC’s surprise agreement to cut production for the first time in eight years may have lifted risky assets in the Asian session, but EUR investors should take advantage of near-term support to further trim holdings in fundamentally weaker oil & gas names, Commerzbank analysts including Marco Stoeckle write in client note.
  • With OPEC deal not due to be formalized before the next meeting on Nov. 30, sees real risk markets get too excited in the short-term, with longer-term disappointment
  • Recommends overall marketweight position; ongoing news-flow in the banking sector remains the “elephant in the room”
  • Current tactical stance of keeping risk close to home in the cash space, sticking with CSPP-buying candidates
  • Recommends a more careful stance in banks and higher-beta segments from subs to EUR HY
    • Outside protection of CSPP, expects better entry levels to materialize as result of decline in risk sentiment, or flurry of supply leading to indigestion
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

People
Marco Stoeckle (Commerzbank AG)

To de-activate this alert, click here

UUID: 7947283