sentix ASR Essentials 41-2016
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16 October 2016
Posted in
sentix Weekly
Pessimism persists on Defensives versus Cyclical sectors
The latest sentix survey indicates that investors are continuing to warm to cyclical and resource-plays at a European sector level, but have become cooler on the more defensive sectors over the past month. Thus survey readings on Energy and Basic Resources versus the market are pulling further away from H1 lows, while on the other side of the sentiment divide, readings on Healthcare and Food & Beverages are as weak as they have been in over fifteen months. The sentiment tilt remains very much skewed towards cyclical sectors versus defensives. Echoes of this are evident at an asset level, with near-term pessimism on Eurozone bonds reaching relatively extended levels in a historic context, albeit survey respondents’ mediumterm strategic bias on bunds remains firmly negative. See pages 2 and 4 for charts.
