The latest bold call from the infamous investment bank seems to be very contrarian, with their view that the European STOXX 600 could rally as much as 18 percent this year. The caveat is that volatility is unlikely to go away and there could be further downside to come before the rally commences so it might be too early to take heed of their call and jump back into stocks. Often it’s the case that after a prediction from Goldman Sachs (N:GS) the markets react by moving in the direction of that call and this time this rather more hedged scenario means European indices can go in either direction for them to be right. This morning investors remain nervous as a mixed open is expected and once again crude is the talking point as prices continue to plunge towards $30 a barrel, which is likely to put energy stocks under further pressure with the debate intensifying around the sustainability of their dividend payments.
On the currency side GBPUSD has found a floor around the 1.4500 level and this morning we see manufacturing and industrial production from the UK where a weaker figure could add further pressure to sterling which has been in a downward spiral for the past few weeks. This ahead of Thursday’s BOE meeting where expectations are the first of the year will have more dovish undertones than before.
"Disclaimer: This material is considered as a marketing communication and does not contain and should not be construed as containing investment advice or an investment recommendation, or, an offer of or solicitation for any transactions in financial instruments.
Past performance does not guarantee or predict future performance. FxPro does not take into account your personal investment objectives or financial situation and makes no representation, and assumes no liability to the accuracy or completeness of the information provided, nor for any loss arising from any investment based on a recommendation, forecast or other information supplied from any employee of FxPro, third party, or otherwise.
This material has not been prepared in accordance with legal requirements promoting the independence of investment research, and it is not subject to any prohibition on dealing ahead of the dissemination of investment research. All expressions of opinion are subject to change without notice. This communication must not be reproduced or further distributed without prior permission of FxPro."