The Weekly Brief (18 January 2016) - J.P. Morgan Asset Management

The Weekly Brief (18 January 2016)

Contributor Global Markets Insights Strategy Team

Eurozone equities are trading back down at the level they were at in early 2014. Since then the euro has depreciated by 20%, the European Central Bank committed to printing a minimum of 1.5 trillion Euros, borrowing costs have fallen substantially, unemployment has dropped nearly 1.5%, consumer confidence has risen and company earnings are up more than 10%.

While the fall in the oil price immediately hits energy shares, the boost to consumers from cheaper fuel prices is yet to be fully felt. Markets are worried about China but the International Monetary Fund forecast that China will continue to grow by over 6% this year. Investors should aim to balance global concerns with the litany of catalysts for eurozone equities.

Markets ignoring the positives

Source: Bloomberg, MSCI, J.P. Morgan Asset Management; data as of 14 January 2016.

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The Weekly Brief (18 January 2016)