“If economic growth does not strengthen, the ECB is likely to continue cutting rates, weakening the euro against the US dollar and making EU exports more competitive. The EU needs to re-energize its economy, as it is uniquely challenged by a combination of weak sovereign finances and potential trade wars with its two biggest trading partners, China and the United States (depending on the outcome of the US elections). Despite the recent rates repricing, we still believe that if the slowdown continues, there’s a chance the ECB could turn even more dovish than the markets currently expect, confirming our bullish view on a diversified portfolio of European bonds.” Læs hele analysen her.
Morten W. Langer
