TechFlow News, June 17: Hugh Kimber, Global Market Strategist at J.P. Morgan Asset Management, stated that following the recent decline in oil prices, European equities have emerged as an attractive value-investment opportunity. He noted that the interim peace agreement between the U.S. and Iran—set to be signed on Friday—has already cooled energy prices and created some selective investment opportunities beneath the surface of equity indices. With the yield curve steepening, bank stocks “still have room to rise further,” while chemical stocks also appear appealing, given their high energy dependency—meaning they stand to benefit if the recent oil-price shock reverses. Kimber added: “I still believe there are abundant opportunities within European markets for tactical positioning.”
Regarding the European Central Bank (ECB), Kimber said market expectations for further rate hikes “appear overblown.” He added: “If the theme for 2025 is embracing global asset diversification, then now that we can begin considering how to navigate through the worst phase of this shock, I see no reason not to continue advancing this process.” (Jinshi)
