Fade the euro rebound, European stocks as 'carry trade blowup only the start': BCA

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Fade the euro rebound, European stocks as 'carry trade blowup only the start': BCA

BCA Research is urging investors to be cautious about the recent rebound in European equities and German bond yields, warning that the effects of the yen carry trade blowup are far from over.

They state that the unwinding of yen carry trades triggered a global market sell-off, and BCA believes this will have a"lasting negative impact on global liquidity conditions." Given this outlook, BCA advises investors to"fade the rebound in European equities and German yields."When it comes to bonds, BCA notes that while the worst may be over for French bonds, the spreads over German bunds will remain volatile.Overall, the investment research firm believes that the yen carry trade blowup is just the beginning of a broader impact on the global economy and financial markets.

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There are too many 'negative crosscurrents' for stocks right now, BCA saysThe list of negatives surrounding stocks is growing, according to BCA Research.
منبع: CNBC - 🏆 12. / 72 ادامه مطلب »