(Finance) – Le Stock market prospects are “still favorable”, while bond markets are “still attractive”. He states it Eurizon Capital (asset management division of the Group Intesa Sanpaolo) at one point on the financial markets.
Equity
Shares are supported by the continuation of the global economic cycle, with stabilizing inflation and rate cuts by central banks. The ratings therefore, they are in line with historical averages not excessive.
The stock market prospects they still appear favorable in a context of growing profits for this year and next in the central scenario which sees the continuation of the expansionary economic cycle.
Bond
THE government bonds they largely discount future rate cuts by central banks, but remain attractive thanks to the coupon flow and defensive role.
The sector of corporate bonds in euro it benefits from credit quality that is still good, despite the difficulties of the European industry, and is supported by the decline in official rates and spreads.
The bond sector of Emerging countries it benefits from the expected depreciation of the dollar and more expansive monetary policies in both the dollar and euro areas.
Dollar
The dollar exchange rate remains subject to two tendencies that offset each other. On the one hand, the strength of the US economy is an element of support for the American currency; on the other hand, the continuation of the global economic cycle and the consequent reduction in uncertainty usually tends to favor currencies other than the dollar and could fuel a recovery of the euro, also thanks to the Fed rate cut.