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 European earnings season, noting investor expectations and market reactions.

What sectors have been the clear beneficiaries of the European reopening?

• Finance and Real Estate

• Travel, Leisure, and Retail

• Energy and Utilities

• Technology and Healthcare

Which markets are mentioned as examples of economies that have experienced reopening?

• China and Japan

• Australia and New Zealand

• United States and Canada

• Brazil and Argentina

Why is Europe considered to be in a better spot in terms of economic momentum?

• It has a large population

• It is positively geared to inflation

• It has a strong technology sector

• It has a stable political environment

What was a notable characteristic of the recent earnings season in Europe?

• Investors were not interested in European stocks

• There was a significant decline in EPS numbers

• Earnings were better than anticipated, but some stocks still sold off

• Companies consistently missed earnings expectations

What was a concern during the European earnings season despite strong results?

• Companies were not raising guidance

• There was a lack of investor interest

• The market had run ahead of itself

• EPS numbers were declining