|2022/05/25 / Erste Group Research|
Valuations down significantly
In our view, the historically slightly below-average valuations of equities and the slight drop in US interest rates for 10Y government bonds (2.8%) last week should have a positive impact on the further development of the global equity market index. At the same time, economic uncertainties due to high inflation, the COVID situation in China, and the recent somewhat weaker global leading indicators are weighing on investors' risk appetite. We expect a volatile sideways trend on the global stock market in the coming weeks.
Rating changes: Dow, Cisco, SAP.
LOreal: Market share gains in all regions and segments
Kering: Yves Saint Laurent and Gucci as growth drivers
Volkswagen: Rising margins due to more expensive cars and cost savings
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|Author||Erste Group Research|
|Product name||Recommendation List|
|Topic in focus||Equities|
|Economy in focus||Eurozone, Germany, Switzerland, United States|
|Currency in focus||Euro, Swiss Franc, US Dollar|
|Sector in focus||Automobiles & Parts, Banks, Basic Resources, Chemicals, Construction & Material, Financial Services, Food & Beverage, Health Care, Industrial Goods & Services, Insurance, Media, Oil & Gas, Personal & Household Goods, Retail, Technology, Telecommunications, Travel & Leisure, Utilities|
|Name||ISIN||# Erste Group products|
|Johnson & Johnson||US4781601046||0|
|Merck & Co||US58933Y1055||0|
|Procter & Gamble||US7427181091||0|
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