European Opportunities Amid Tech Volatility

UBS has downgraded European IT to Neutral amid high volatility and valuations, while recommending selective exposure to resilient sectors like healthcare and industrials. Despite a dim view on Eurozone GDP growth, the firm expects ongoing earnings strength from companies with global exposure.

Key Takeaways

• 1.Downgraded European IT from Attractive to Neutral due to excessive valuations.
• 2.Maintain Neutral view on Eurozone equities, favoring resilient earnings and structural growth over broad exposure.
• 3.Health care and Industrials identified as attractive segments for long-term growth.

Table of Contents

• From Circle One
• Thought of the day
• What to watch: 11 June
• Caught our attention
• Market update
• Global asset class preferences definitions
• Appendix