JPMorgan: Falling oil prices create opportunities for European stock market positioning

Deep Tide TechFlow News, June 17 — Morgan Asset Management Global Market Strategist Hugh Kimber stated that after recent oil price declines, attractive value investment opportunities have emerged in European stock markets. He pointed out that the temporary peace agreement between the U.S. and Iran, which will be signed on Friday, has cooled energy prices and created some selective investment opportunities beneath the surface of stock indices. As the yield curve steepens, bank stocks “still have further upside potential,” and chemical stocks also look quite attractive because their businesses are highly dependent on energy, and a reversal of recent oil shocks would benefit them. Kimber said, “I still believe there are many opportunities within the European market to seize when the timing is right.”

Regarding the European Central Bank, Kimber stated that market expectations for its need to raise interest rates “seem to be overestimated.” He said, “If the theme for 2025 is to embrace global asset diversification, then since we can now start considering how to get through the worst of this shock, I see no reason not to continue advancing this process.” (Jin10)