JPMorgan analysts have picked their likely winners and losers for the second half of 2022, naming stocks that should do well — or badly — when factors like inflation, bond yields and oil prices are taken into account. account. Analysts have identified several trends for the coming months after a volatile first half that saw Russia invade Ukraine, rising inflation and higher Federal Reserve interest rates, all of which contributed to market liquidation. JPMorgan expects inflation to peak and bond yields to stabilize, its analysts led by Mislav Matejka said in a June 6 research note. “The fundamental risk-reward for equities likely improves as we approach 2H. no further curve flattening lately, and the USD is These should be joined by a likely spike in inflation, on an annual basis [year-over-year] change base,” they said. In terms of sectors, JPMorgan is overweight energy, mining, banks, autos and travel, and has selected several stocks in several baskets. The bank identified “the beneficiaries versus the losers of rising inflation”. energy companies ENI and Repsol, car company Volvo, financial companies Credit Suisse and BNP Paribas and miners Glencore, Anglo American and Rio Tinto. Meanwhile, its “losers” on rising inflation included consumer goods companies Unilever and Diageo, as well as healthcare companies AstraZeneca and Novartis Read more Adobe, an energy ETF and more: CNBC’s ‘Halftime Report’ traders answer your questions Why the market gets nervous when the 10-year Treasury yield hits 3% Ford tops JPMorgan’s list of cheapest stocks also listed stocks that The yield on the benchmark 10-year Treasury was 3.0123% on Wednesday morning, after rising above its highest level in almost a month. Beneficiaries, he said, included financial firms ING Group, Commerzbank, Societe Generale and Standard Chartered, while “bond yield losers” included utility companies Severn Trent, SSE and United Utilities. The bank also forecast further earnings growth in Europe and noted that all sectors except real estate are seeing sharp upward revisions to earnings per share (EPS) – EPS is a measure that investors use to assess a company’s profitability. The bank added that a recession is unlikely even in Europe. “Financing conditions are tightening, but not that much in a longer-term context. Labor markets are strong and [the] The consumer still has a cushion of unspent savings,” its analysts said. High Yield Picks In addition to its winning and losing baskets, JPMorgan has picked 40 “sustainably high yielding European stocks, with secure dividends and strong balance sheets”. included automakers Stellantis and Mercedes-Benz, financial firms Aviva and Danske Bank, and industrials Maersk and Randstad. – CNBC’s Elliot Smith contributed to this report.
Sign for JP Morgan on March 7, 2020 in London, UK. JPMorgan Chase & Co. is an American multinational investment bank and financial services holding company headquartered in New York.
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JPMorgan analysts have picked their likely winners and losers for the second half of 2022, naming stocks that should do well — or badly — when factors like inflation, bond yields and oil prices are taken into account. account.
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