Europe, U.S. Market Risks Are Back to Front, Saxo Bank Says
- European growth can potentially outperform U.S.: Saxo Bank CIO
- Sees 60% chance of U.S. recession versus 15% Bloomberg survey
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The market is overestimating political risk in Europe and underestimating the chances of a U.S. recession, according to Saxo Bank A/S.
Risk premiums in the euro and European assets are likely to disappear after the French election, said the Danish bank’s chief investment officer Steen Jakobsen. The region’s economic growth can outperform the U.S. over the course of Donald Trump’s presidency as excessive expectations about his reflationary policies are fading, he added.