26 Jul 2013
Flash: Developed markets equities look to improve – Goldman Sachs
FXstreet.com (New York) - The Economics Research Team tracks the performance of stocks in the Eurozone and the UK, with a focus on growth.
Key quotes
“Our economists expect DM growth to improve by more than EM growth over the next year as advanced economies benefit from loose financial conditions and more moderate fiscal tightening. The recent Euro area PMI data has been especially strong, with the flash reading for July moving above 50 in manufacturing and up to 49.6 in services.”
“Over the last couple of months we have started to see select cyclical and more domestic-focused stocks outperform in Europe. The UK names have performed especially well given the strong UK survey data and housing rebound. We recommend a long on the FTSE 100 (ex resources) vs. the SMI, as we see both greater value in the FTSE 100 companies and better domestic growth benefiting the UK market.”
Key quotes
“Our economists expect DM growth to improve by more than EM growth over the next year as advanced economies benefit from loose financial conditions and more moderate fiscal tightening. The recent Euro area PMI data has been especially strong, with the flash reading for July moving above 50 in manufacturing and up to 49.6 in services.”
“Over the last couple of months we have started to see select cyclical and more domestic-focused stocks outperform in Europe. The UK names have performed especially well given the strong UK survey data and housing rebound. We recommend a long on the FTSE 100 (ex resources) vs. the SMI, as we see both greater value in the FTSE 100 companies and better domestic growth benefiting the UK market.”