Risk Appetite To Drive Equities, High Betas

Since the beginning of March, our European market views have played out well. Long-end treasury yields have fallen in line with declining interest rate expectations, yield curves have flattened as a result, CDS spreads have compressed as investors price out risk in CEE and emerging market currencies such as the Russian rouble and Polish zloty have consistently outperformed the euro. Among asset classes, notably absent from our recent strategy have been equities, where we have maintained a largely ambivalent medium-term

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