BoA has tracked signs of the upcoming stock market sell-off. While more expensive and at-risk stocks are set to fall, value stocks should survive.
European stocks rally
On Friday, European equities went up, breaching a five-month maximum recorded yesterday because market participants cheered upbeat signals over US-China trade negotiations and after British lawmakers underpinned a delay of a chaotic departure from the EU.
The STOXX 600 managed to surged by about 0.1%, breaking the October 5 maximum recorded on Thursday and finding itself on track for its greatest weekly leap for a month.
All the key bourses stood in positive territory. However, London's FTSE 100 managed to outperformed its peers, backed by its heavyweight mining and oil shares on higher metals as well as crude prices. As for trade-sensitive DAX, it surged by 0.1%.
The sentiment was also underpinned by strengthening hopes that the United Kingdom won’t depart from the European Union without an agreement on March 29 after Thursday night's parliamentary vote.
Technology shares turned out to be the top-notch performers, adding 0.6% after better-than-anticipated outcomes from American chipmaker Broadcom overnight and backed by hopes that China and America are going to resolve their trade clash, which has affected financial markets.
Chinese Vice Premier Liu He had a telephone conversation with US Treasury Secretary Steven Mnuchin as well as US Trade Representative Robert Lighthizer. The both sides made further substantive progress on trade negotiations, as Xinhua informed on Friday.
The prospect of the trade negotiations taking longer than anticipated tamed some of the profits, and there was still no clarity on how close the two leading countries are to coming to a compromise.
UBS headed south by 1.3% after Switzerland's major financial institution told it’s increasing its litigation provisions to deal with a French court that imposed a hefty penalty in February.
Meanwhile, Swedbank tumbled by 1.9% because the Danske Bank moneylaundering scandal escalates.
On Saturday, the US Food and Drug Administration approved Johnson&Johnson’s vaccine for emergency use against Covid-19. Will JNJ rise?
Twitter reported encouraging earnings results. Cisco's earnings beat estimates, but revenue declined for the fifth quarter in a row.
Great news for oil bulls! OPEC and its allied producers agreed to expand output cuts for the next month.
The USD skyrocketed after Fed Powell’s speech. OPEC and allied producers agreed to extend production cuts for another month. Oil surged.
The European Central Bank publishes its monetary policy statement that includes an announcement of the interest rate on March 11, at 14:45 MT time.