Europe First to Market

J.P. Morgan's daily update highlights the 'Credit Check VI' report focusing on refinancing risks amidst a rates reset, while providing tactical updates on the Property and E&P sectors.

Key Takeaways

• 1.Refinancing risk is a primary focus for European equities; companies with high perceived refinancing risk [JPESLCRR] have underperformed well-positioned names by 6% YTD.
• 2.The European Property sector's recovery is contingent on market pricing of central bank hawkishness; a reversal in 2H could drive significant rebounds for stocks like Vonovia and LEG.
• 3.European E&P risk/reward is balanced following a 53% YTD move, though potential escalation in the Strait of Hormuz remains a significant upside catalyst for Brent prices.

Table of Contents

• Today's Morning Meeting
• Also Published Today
• In Case You Missed It... Trending in the Last Month
• Key Changes
• JPM Events
• Upcoming Earnings