Click on charts to enlarge, courtesy of Citigroup Global Markets.
As also Euro has rallied circa 10% in recent months, they conclude:
Post Euro rallies, equities are usually weak, suggesting short-term caution.However, the strategy outlook is as follows:
As risk appetites have grown in recent months, equities have rallied and the Euro has strengthened against the Dollar. When this has happened in the past, the equity market has generally reacted positively in the shorter-term but has been more mixed over 6-12-months. On a sector basis, what’s been interesting this time round is the resilience of the Banks sector.Uffff... First, post Euro rallies, equities are usually weak, suggesting short-term caution? Then, when this has happened in the past, the equity markets has generally reacted positively in the shorter term?
And then also, look at resilience of the Banks sector from different perspective.
However, the maximum pain for Friday the 13th are buy tickets?