Monday 29 March 2021
Research / Market
Initiated in April based on a cheap quality cyclical stock rebound, the value rotation in Europe has accelerated, favouring deep value names – the segment most impacted by the Covid-19 crisis – in early November, after the announcement of the development of an effective vaccine. Since the beginning of this year, we are in the third stage, led by financials and banks in particular, supported by higher rates and inflation expectations. This means that the rotation is broadening. We continue to be constructive and favour banks with commercial and retail banking exposure that have dominant positions in their domestic markets...
Markets have seen some relief in a year that overall is likely to be remembered as among the most challenging for investors.
Biodiversity, or the term used to describe all living organisms and ecosystems of which they are part, is declining at an alarming rate with now 1 million (out of an estimated 8 million) plant and animal species being threatened with extinction.
At its December meeting, the ECB hiked rates by 50bp, to 2.0% (deposit rate). The Bank delivered a very hawkish statement.
