sentix ASR Essentials 39-2017

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Investors increasingly poles apart on Equities versus Bonds

The latest sentix survey indicates that investors remain resolutely upbeat on equities and deeply downbeat on bunds. As a result, the sentiment gap between bunds and eurozone equities is now large and growing, albeit the gap has yet to reach historic lows. In the case of equities, investors’ increasingly positive medium-term strategic bias on the EuroSTOXX is likely being lent support by growing caution on the euro, with EUR/USD medium-term strategic bias readings rolling over in recent weeks. The interplay between investor opinion on equities, bonds and the euro remains notable. It is a sentiment angle worth watching as markets move into the final quarter of the year. See Page 2 for charts.

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