JPMorgan Cautious On European Cyclicals

Strategists at JPMorgan on Monday downgraded European capital goods and chemical sectors, two sectors closely geared to an economic recovery, and took a more favorable stance on more defensive, dividend-paying telecoms and consumer staples.

The recommendation stands at odds with the recent investor enthusiasm on European stocks which has largely hinged on the recovery in profits and the upswing in the region’s economy.
Source: FA Magazine

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