HSBC: INVESTORS ROTATING OUT OF FRANCE INTO UK

HSBC says European equity funds are shifting capital from France toward the UK, as concerns over France’s fiscal outlook intensify.

The bank recently cut France to Underweight, citing worsening public finances, weaker growth forecasts and deteriorating earnings expectations.

HSBC remains Overweight European technology and sees higher bond yields continuing to support financial stocks.
(@WalterBloomberg)