Barclays Downgrades European Quality Stocks on Rising Inflation Threat
Deep News
Sep 08
Barclays strategists have turned bearish on European quality stocks, citing looming inflation risks and the fading role of earnings stability as a market anchor.
The team, led by Emmanuel Maconga, wrote in a research note: "With valuations only back to long-term averages and earnings advantages narrowing, we see insufficient support for a sustained rebound in European quality stocks."
The strategists upgraded low-volatility stocks to a neutral rating, viewing the sector as a "more attractive macro hedge tool."
The report noted that interest rates remain the dominant driver of style factor performance.
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