Equities

This week, our three screeners cover equity plays in European Defense, Chinese Tech, and “Boring Stocks”. 

DeepSeek's AI breakthrough will likely enhance China’s productivity gains. But does it justify a re-valuation in Chinese tech stocks? Sustaining the Chinese tech rally will require corporate profits to overcome the pressures of China’s deflationary cycle. Meanwhile, DeepSeek’s innovations may fuel greater competition, intensifying price wars and putting further strain on Chinese tech companies’ profit margins.

The rise of the far-right is challenging mainstream German politics. The CDU/CSU and SPD will govern Germany again after the election. A ceasefire in Ukraine will offer some relief, but Trump’s policies will keep tensions high. 

In lieu of all the geopolitical and economic news in media, this report looks at where next the dollar is likely to trend in the next one-to-three months. Our view is down, though on a cyclical horizon (six-to-twelve months), we would not be short the dollar, for now. 

This week, our three screeners cover equity plays on the run-up in gold prices, a hotter-than-expected US inflation print, and calling the top in Bitcoin.

Thanks to their attractive valuations, European equities are piquing the interest of global investors. Is there more to the appeal of European stocks or do they remain a mere value trap?