Europe First to Market

J.P. Morgan remains constructive on European equities, advising investors to buy dips and look toward Low Volatility stocks. Simultaneously, they recommend reducing exposure to the Mining sector due to peak valuations and rising cost inflation.

Key Takeaways

• 1.The overall market outlook remains constructive with a recommendation to 'buy the dips' triggered by geopolitical tensions.
• 2.Low volatility stocks are currently presenting an attractive entry point and are expected to perform well regardless of the trajectory of bond yields.
• 3.Exposure to the Metals & Mining sector should be reduced as valuations are at historical highs (+1SD) and cost inflation of 5-10% is expected to erode earnings.

Table of Contents

• Today's Morning Meeting
• Bond yields and market leadership
• AFL | Global Autos
• J.P. Morgan Annual Asia Auto Trip & J.P. Morgan China Summit
• Headwinds blow harder for Mining
• JPMorgan Euro TMT Conference
• Also Published Today
• European Exchanges
• Upcoming Earnings

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