CE Equities: Preferring Poland

On the back of a wave of eurozone credit rating downgrades by ratings agency Standard & Poor's we maintain our largely bearish view on Central European equity markets and expect the region to remain vulnerable to negative sentiment towards European assets. Relatively speaking, we see scope for a bounce in Poland's WIG20 equity index in the event of a sustained improvement in global investor risk appetite. On a more negative note, we believe Hungary's BUX equity index is likely to underperform the region given the challenging macroeconomic backdrop and investor risk aversion towards the country's asset classes as a result of erratic government policy and a deteriorating economy.

To read the full article, please choose one of the following options: