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5 Jul 2013
Flash: European markets could provide H2 surprise – Goldman Sachs
FXstreet.com (New York) - According to the Economics Research Team at Goldman Sachs, “We think sticking to strategic views – the US private-sector recovery, the policy shifts in Japan and EM constraints – is likely, by and large, to be more important than looking for new themes, tempting though that may be.”
As the US recovery becomes more visible, along with the adjustments and rebalancing that this is prompting, we think markets are likely to move further in many of the places where they have moved a decent way already.
Europe, especially the UK, could provide the H2 surprise
In terms of new themes, we are more open to potential opportunities in Europe, especially the UK, than for some time. “We are also more focused than we were at the start of the year on the risks to EM economies and assets, particularly those with a combination of overvalued currencies and significant financing needs.” the team adds.
As the US recovery becomes more visible, along with the adjustments and rebalancing that this is prompting, we think markets are likely to move further in many of the places where they have moved a decent way already.
Europe, especially the UK, could provide the H2 surprise
In terms of new themes, we are more open to potential opportunities in Europe, especially the UK, than for some time. “We are also more focused than we were at the start of the year on the risks to EM economies and assets, particularly those with a combination of overvalued currencies and significant financing needs.” the team adds.