JPMorgan Upgrades Emerging Market Equities with India Top Pick, Sees European Stocks Outperforming U.S. by 25 Points Amid Tactical Bullish U.S. View
JPMorgan has upgraded its outlook on emerging market (EM) equities, signaling a more bullish stance on these assets. The bank's equity strategy highlights India as one of the top picks within emerging markets. Concurrently, JPMorgan projects that European stocks could outperform U.S. equities by a record 25 percentage points this year. Despite recent volatility, including a 2.6% drop in the S&P 500 last week which pushed its year-to-date return into negative territory at -1.3%, JPMorgan maintains a tactical bullish view on the U.S. market. This optimism is supported by expectations of stable macroeconomic data, positive corporate earnings, and further de-escalation of the trade war. However, JPMorgan also warns that bond yields may rise due to tariff-driven inflation and fiscal concerns, which could influence market dynamics. Overall, the bank anticipates international markets will continue to trade more favorably throughout the year.
Sources
Wall St Engine
JPMORGAN: 'INTERNATIONAL MARKETS SHOULD CONTINUE TRADING INCREASINGLY MORE FAVORABLY THIS YEAR' "Over the following months, our view is that bond yields could move up for the wrong reasons, due to tariff-driven inflation pickup and rising fiscal concerns, while at the same time
- Wall St Engine
JPMORGAN: 'REITERATING THE TACTICAL BULLISH VIEW' "The $SPX fell 2.6% last week, trimming the MTD gain to 4.2% and pushing the YTD return back into negative territory, -1.3%. On the week, SPX outperformed, SPW and RTY while trailing NDX; the US underperformed most major
Michael Brown JPM Desk - "With the SPX less than 6% from ATHs, is the next 300 points up or down? We think higher...tactical bullish hypothesis remains (i) stable macro data; (ii) positive earnings; and (iii) a further de-escalation of the trade war"
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