#1
Against a softer economic backdrop, we decided to move to a modestly more conservative risk-taking allocation. We are maintaining our overweight on equity markets, however.
#2
We favour European equity markets, which should benefit from their attractive valuations. We remain exposed to other regions, which should benefit from a still positive global growth environment and rate cuts by the main central banks. We are also neutral on emerging equity markets, despite their attractive valuations, largely due to the situation in China, where the economy remains sluggish.
#3
Rising prospects of key interest rate cuts and the attractiveness of the carry trade continue to play in favour of bond markets. The safe-haven status of government bonds remains important in the current geopolitical context, but also in the event of a recession risk scenario materialising.
#4
We are neutral on the dollar against the major currencies, against a backdrop of fairly synchronised rate cuts by the main central banks.
