In a European equity strategy note to clients on Friday, BofA analysts raised the mining sector to Overweight and lowered the luxury sector to Marketweight.
The firm also revealed it remains negative on European equities given the scope for slower US and Euro area growth.
"After the recent outperformance, luxury goods is no longer overpricing global growth risks, leading us to lower the sector to marketweight," the firm explained.
"Conversely, following the recent sharp underperformance, mining ranks among the sectors discounting the most macro negativity, with even our below-consensus base-case macro projections consistent with upside-only over the coming months," they added.
The firm's projections of PMI deterioration in the US and the Euro area, paired with relative stability in China, still imply a renewed decline in the global PMI, added the bank, which also remains underweight cyclicals versus defensives overall.