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BofA’s Raedler Sees Bottom for European Stocks After Steep Rout

  • Strategists raise European stocks to neutral from negative
  • Macroeconomic headwinds now mostly priced in: BofA strategists

The selloff in European equities has gone too far as most of the impact from negative economic news is now priced in, according to Bank of America Corp. strategists.

The team led by Sebastian Raedler raised the region’s stocks to neutral from negative, saying the Stoxx Europe 600 Index had fallen below their target of 410. Still, even after a nearly 20% drop from a record high this year, they warned that it was too soon to turn outright positive given downside risks to growth and upside for real yields.