HomeFinance NewsTop-performing global stocks when the US dollar strengthens, as per BofA

Top-performing global stocks when the US dollar strengthens, as per BofA

Published on

According to the Bank of America, a rising U.S. dollar could actually benefit a group of European stocks. As the U.S. dollar index reaches its highest level since March, the bank’s screen captures European companies that are expected to outperform as the U.S. dollar rises. These European stocks have reported revenue exposure to the U.S. or North American region that exceeds 20% and also show a significant positive slope against the U.S. dollar index. Prominent names on the bank’s list include British American Tobacco, Diageo, BP, Novozymes, Qiagen, Bayer, Roche, Wolters Kluwer, Tenaris, and Nokia.

In the last quarter of the year, the U.S. dollar index is predicted to hit a “golden cross,” where its 50-day moving average surpasses its 200-day counterpart. This milestone typically signifies further gains in the coming months. While this scenario usually puts pressure on global economies and stock markets, certain European stocks are expected to benefit. Over the past five years, low-risk stocks, and companies in the energy sector and Norway have outperformed the most when the U.S. dollar index has been rising. European healthcare companies, as well as those in media, energy, and telecommunication sectors, are also featured on the Bank of America’s list.

Among the European stocks identified, British American Tobacco, Diageo, and BP are some of the top names. These companies have reported revenue exposure to the U.S. or North American region greater than 20%. Other European healthcare companies such as Novozymes, Qiagen, Bayer, and Roche also make the list. Additionally, Wolters Kluwer, Tenaris, and Nokia, operating in media, energy, and telecommunication sectors respectively, are expected to benefit from the rising U.S. dollar. With the U.S. dollar index reaching its highest level in months, these European stocks are likely to experience further gains in the coming months.

Source link

Latest articles

What Is Outdoor Lighting Service and Why Is It Necessary?

Outdoor lighting services involve the design, installation, and maintenance of lighting systems for exterior...

The Complete Guide to Paver Sealing Services: What, Why, and Who to Hire

Paver sealing services are essential for preserving and enhancing the beauty of outdoor spaces...

Excavation Services: What They Are and Why You Need Them

Excavation is the process of preparing a site for construction or land improvement by...

The Essential Guide to Pressure Washing: What It Is, Why It Matters, and Finding the Best Professionals

What is Pressure Washing? Pressure washing, also known as power washing, uses a high-pressure water...

More like this

What Is Outdoor Lighting Service and Why Is It Necessary?

Outdoor lighting services involve the design, installation, and maintenance of lighting systems for exterior...

The Complete Guide to Paver Sealing Services: What, Why, and Who to Hire

Paver sealing services are essential for preserving and enhancing the beauty of outdoor spaces...

Excavation Services: What They Are and Why You Need Them

Excavation is the process of preparing a site for construction or land improvement by...