Due to structural headwinds, we downgraded European equities to Underweight in December. Yet a number of catalysts could occur in Q1 that could be well received by equity markets. We peruse the opportunities that may emerge in European equities.

Galvanized by U.S. rhetoric, the European Union looks to be pivoting towards greater cohesiveness and increased fiscal spending. We examine the implications for the regional equity market.

Asia’s equity outlook will likely depend on U.S. tariffs, China’s stimulus and Japan’s structural changes. Stable fundamentals support cautious optimism for investment-grade bonds.