Analysis of European Assets and Political Uncertainties

Dirk Steffen, our Chief Investment Officer EMEA and Global Chief Investment Strategist, discusses recent inflation prints, elaborates on European assets after elections and comments on the Q2 earnings season.

Inflation data from the US came in slightly lower than expected which caused quite a bit of rotation. "Everybody's darlings - the megacaps and growth stocks - underperformed significantly while small-cap stocks, represented by the Russell 2000, outperformed," says Dirk.

Commenting on elections in Europe, Dirk says: "While politics usually impact capital markets just for a short period of time, this time, these effects could last a bit longer." But there's good news: "Fundamentally speaking, European stock markets look quite attractive as we have a turning economy which provides better growth" adding that "this comes at a price that is at a record low versus U.S. equities."

Finally, earnings season just kicked off and although the extended technology industry is still doing very well, growth rates (albeit strong) are coming down. Dirk sees "other sectors coming back and we're getting to a market which is more balanced, leading to an overall healthier market environment."

For more investing insights, please visit deutschewealth.com 

In Europe, Middle East and Africa as well as in Asia Pacific this material is considered marketing material, but this is not the case in the U.S. No assurance can be given that any forecast or target can be achieved. Forecasts are based on assumptions, estimates, opinions and hypothetical models which may prove to be incorrect. Past performance is not indicative of future returns. Performance refers to a nominal value based on price gains/losses and does not take into account inflation. Inflation will have a negative impact on the purchasing power of this nominal monetary value. Depending on the current level of inflation, this may lead to a real loss in value, even if the nominal performance of the investment is positive. Investments come with risk. The value of an investment can fall as well as rise and you might not get back the amount originally invested at any point in time. Your capital may be at risk. 

The services described in this podcast are provided by Deutsche Bank AG or by its subsidiaries and/or affiliates in accordance with appropriate local legislation and regulation. Deutsche Bank AG is subject to comprehensive supervision by the European Central Bank (“ECB”), by Germany’s Federal Financial Supervisory Authority (BaFin) and by Germany’s central bank (“Deutsche Bundesbank”). Brokerage services in the United States are offered through Deutsche Bank Securities Inc., a broker-dealer and registered investment adviser, which conducts investment banking and securities activities in the United States. Deutsche Bank Securities Inc. is a member of FINRA, NYSE and SIPC. Lending and banking services in the United States are offered through Deutsche Bank Trust Company Americas, member FDIC, and other members of the Deutsche Bank Group. The products, services, information and/or materials referred to within this podcast may not be available for residents of certain jurisdictions. © 2024 Deutsche Bank AG and/or its subsidiaries. All rights reserved. This podcast may not be used, reproduced, copied or modified without the written consent of Deutsche Bank AG. 030620 030121