Barclays has identified a range of global stocks that are poised to benefit as central banks in Europe and England prepare to cut interest rates. The investment bank’s analysis comes as financial markets anticipate shifts in monetary policy, with potential implications for various industries and companies. The European Central Bank and the Bank of England are expected to continue or start cutting interest rates in the second half of this year and continue until 2025. It will be set at 4%. Barclays added the following stocks to its “rate cut winners basket”, which includes: Cellnex Telecom, Royal KPN, Hermes, Zalando and Siemens Healthineers. While banks are generally seen as suffering from lower interest rates, Barclays said any loss in earnings from lower rates could be partially offset by higher loan volumes and lower provisions for bad loans. “While banks’ profitability is undoubtedly tied to interest rates, we note that their (earnings per share) have never seen the full benefits of rising rates this cycle (lower leverage, less business risk), which Meaning their earnings beta should be “lower than expected” in a shallow tapering cycle, strategists at the bank led by Matthew Joyce said in a note to clients on July 24. An exception, and possibly fragile. Barclays predicts that interest costs may jump from around 14% to 21.5% of real estate company sales by the end of 2026.
Barclays names stocks to buy when interest rates cut | Real Time Headlines
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