LIVE MARKETS — RBC rotates into healthcare, trims US tech exposure
(Adds blog post) STOXX 600 up 0.6% Eyes on US CPI, reporting season ASML bounces on earnings MS ups MSCI Europe target Nasdaq futures little changed Welcome to the home for real-time coverage of markets brought to you by Reuters reporters. You can share your thoughts with us at Rbc Rotates Into Healthcare, Trims Us Tech Exposure RBC Capital Markets swapped its preference for US technology stocks in favour of healthcare, upgrading the latter to "overweight" and cutting tech to "market weight" on valuation concerns. The brokerage said it wanted to rotate into cheaper areas of the market after a strong run in technology stocks, adding that its valuation indicators for the sector had deteriorated. The AI boom has driven technology valuations higher over the past four years, but concerns over concentration risks and delayed returns on investments have recently pressured the sector. RBC added that healthcare's relative performance has historically moved inversely to that of technology against the S&P 500, making it "a natural destination to look to when dialing down tech exposure." Healthcare will be a key point of debate heading into the November midterm elections, but the expected impa
(Adds blog post) STOXX 600 up 0.6% Eyes on US CPI, reporting season ASML bounces on earnings MS ups MSCI Europe target Nasdaq futures little changed Welcome to the home for real-time coverage of markets brought to you by Reuters reporters. You can share your thoughts with us at Rbc Rotates Into Healthcare, Trims Us Tech Exposure RBC Capital Markets swapped its preference for US technology stocks in favour of healthcare, upgrading the latter to "overweight" and cutting tech to "market weight" on valuation concerns.
The brokerage said it wanted to rotate into cheaper areas of the market after a strong run in technology stocks, adding that its valuation indicators for the sector had deteriorated. The AI boom has driven technology valuations higher over the past four years, but concerns over concentration risks and delayed returns on investments have recently pressured the sector.
RBC added that healthcare's relative performance has historically moved inversely to that of technology against the S&P 500, making it "a natural destination to look to when dialing down tech exposure." Healthcare will be a key point of debate heading into the November midterm elections, but the expected impact on companies could vary. (Joel Jose) *** Earlier On Live Markets: Who’s Betting On An Earnings Boost For Us Stocks Click Here Stoxx Gains, Morgan Stanley Talks Up Earnings Click Here Before The Bell: Europe Eyes Firmer Start, Tech Looks Shaky Click Here Let The Doves Sing Click Here