JPMorgan strategist: European political situation will continue to be under pressure

On June 24th, Jinshi Data News, JPMorgan Chase stated that any improvement in the political background would be the key to outperforming the European stock market, and maintained an equal weight rating on stocks in the region. Strategists led by Mislav Matejka do not believe that the current French risks will change the rules of the eurozone game, but are worried that the situation may need to worsen before it improves. Strategists believe that the new French government may test its limits, and the financial market may ultimately need to counter with more aggressive fiscal easing policies, facing the risk of further market contraction. JPMorgan Chase recommends staying on the sidelines for now, but expects the second half of the year to be a better entry point for overweighting Eurozone stocks.