Allianz’s Morris-Eyton: Bullish on European Equities Relative to Other Regions

The video discusses the European market's reopening and its impact on travel, leisure, and retail sectors. It compares global reopening trends, particularly in Australia and New Zealand, highlighting strong housing markets and online sales. The discussion shifts to European equities, emphasizing their potential outperformance due to economic momentum and inflation. The video concludes with insights into the earnings season, noting investor expectations and the importance of strong fundamentals.

What sectors are identified as clear beneficiaries of the European reopening?

• Travel, Leisure, and Retail

• Technology and Healthcare

• Finance and Real Estate

• Energy and Utilities

Which markets are mentioned as examples to study post-reopening trends?

• Brazil and Argentina

• Australia and New Zealand

• United States and Canada

• China and Japan

What is a key characteristic of the European market that could lead to outperformance?

• Dominance in the automotive industry

• Cyclical nature and positive gearing to inflation

• Strong focus on healthcare

• High dependency on technology

Why is Europe considered under-owned by regional investors?

• Low economic growth

• High political risk

• Lack of investment opportunities

• Preference for tech and commodity sectors

What was a notable feature of the recent European earnings season?

• Investors were indifferent to results

• No significant changes in stock prices

• Stocks sold off despite strong EPS beats

• All companies exceeded expectations