Amundi Asset Management

2019 Top 400 ranking: 9http://www.amundi.com

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Amundi

European Equity: Combining value and quality in this new market phase

We believe we have entered a mature stage of the financial cycle amid central bank monetary policy normalisation (more advanced in the US) and decelerating economic growth globally. Protectionist dynamics are also features of this phase of the cycle, while the US fiscal expansion and a capex revival are all forces working to extend it.

The move to a late stage of the cycle is leading to a tightening in liquidity and financial conditions and to potentially more frequent episodes of volatility spikes, such as the one experienced in February. Market swings in 2018 have been the result of this new, less complacent and less directional market, which we expect will continue.

In 2018, investors have so far been more cautious on European equities. In fact, while valuations remain relatively compelling, multiple political risks weigh on the appetite for this asset class. In the short term, a series of events will continue to create noise on European assets: country-specific political deadlines, the continuation of trade disputes at least until the US mid-term elections in November, the starting of the campaign for the 2019 European parliament elections and the Brexit negotiations.

With the uncertainty led by this newsflow, we believe that European equities are starting to offer pockets of opportunities, especially for stock picking investors. We think that 2019 could mark a comeback to this asset class as global investors reassess the equity opportunities in the markets, with a stronger focus on the quality of companies, diversification of their portfolios and avoiding crowded and overvalued areas. When this occurs, we think that a focus on quality companies that are able to deliver sustainable earnings growth in the future and that are trading at discount levels will be key to exploring market opportunities in Europe.

Read the complete white paper at the link beneath Related Links

Head Office
90, boulevard Pasteur
Paris
75015
France
Company website:
http://www.amundi.com
Year Founded:
2010
No. of investment offices worldwide:
6

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What’s new

  • Trade War Escalation And Impact On World Trade And Economic Growth

    Trade War Escalation And Impact On World Trade And Economic Growth

    White papersWed, 18 Sep 2019

    Trade tensions re-escalated during the summer. Starting on 1 September, the US Administration introduced new tariffs and China retaliated simultaneously. More tariffs are likely from the US side, including an increase in tariffs already in place from 25% to 30% and new tariffs on the last tranche of imported goods from China. Concerning extra-tariffs measures, in August the temporary licences granted to US companies to operate with Huawei were extended upon their expiration but, so ...

  • Risk Factors, Macroeconomic Context And Forecasts - September 2019

    Risk Factors, Macroeconomic Context And Forecasts - September 2019

    White papersWed, 18 Sep 2019

    Financial markets have been rattled in the past weeks over escalating trade war between the US and China as both imposed tariffs and counter-tariffs on imports. Idiosyncratic risks stories in countries such as Argentina resurfaced, the UK’s parliament was suspended over Brexit chaos and Italy witnessed a political crisis of its own, although a government seems in sight now.

  • Global Investment Views - September 2019

    Global Investment Views - September 2019

    White papersWed, 4 Sep 2019

    Financial markets have been rattled in the past weeks over escalating trade war between the US and China as both imposed tariffs and counter-tariffs on imports. Idiosyncratic risks stories in countries such as Argentina resurfaced, the UK’s parliament was suspended over Brexit chaos and Italy witnessed a political crisis of its own, although a government seems in sight now. 

  • domestic focus to exploit emerging markets equity opportunities

    Domestic focus to exploit Emerging Markets equity opportunities

    White papersSun, 1 Sep 2019

    The emerging markets (EM) universe has experienced significant changes in the last decade with the further addition of investible countries (i.e. China A shares in 2018).

  • Fed And Ecb, Bridging From A “Mid-Cycle Adjustment” To An “Impactful And Significant” Package.

    White papersTue, 27 Aug 2019

    The minutes from the latest ECB meeting suggest that the ECB is likely to proceed with a full set of measures in September, confirming not only the indications from President Draghi following the meeting but also the very latest statements by Olly Rehn, calling for the need for an “impactful and significant” package.

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