Macro Strategy Views Recovery, Reflation And Asset Rotation

The market is likely to price a higher chance of a fast recovery due to non-farm payroll, German stimulus and the ECB. We believe that investors should focus on opportunities where 1) solid fundamentals support an extension of the current rally (for example we have just lowered our target on short EUR/NOK to 10.00 from 10.50, and 2) there are catch-up opportunities, such as eurozone banking stocks where risk premiums are still elevated. We discuss the ECB, equity markets and EUR/USD. Global Head of FI&C Research, Thomas Harr, chairs today’s podcast and he is joined by Chief ECB strategist Piet Christiansen, Senior equity strategist Bjarne Breinholt Thomsen and Senior FX Strategist Lars Merklin.