Julius Baer strengthens exposure to French and Eurozone equities
Julius Baer has increased its exposure to French and Eurozone equities due to reforms and stronger euro.
Christoph Riniker, head of Equity Strategy Research at Julius Baer, explained :
“Reforms like the ‘Loi Macron’ should stimulate macro-economic growth, investment and employment. Policy shifts in the past also had an impact on equity markets. Given its substantial domestic sales exposure, the French market can also benefit from a stronger euro, just like peripheral markets. We increase our rating for the French equity market to overweight and confirm our price target for the CAC 40 of 5,200 points.
“Turning overweight on French equities and taking the other assessments within the eurozone into consideration (Italy and Spain being overweight as well) now clearly implies an overweight of the overall region again. We therefore adjust our aggregate eurozone rating to overweight as well.”