|2022/09/01 / Erste Group Research|
Defensive equities preferred
Rating changes: Deere & Co, NVIDIA
The global equity market came after the previously strong gains in 3Q in the last two weeks of August significantly under pressure. Reasons for this were profit taking, somewhat weaker than expected economic data (EMIs) as well as the confirmed commitment of the Fed to raise interest rates further.
Now, the new major lockdown in China in the city of Chengdu with 21 million inhabitants is having a negative impact on the stock market. The city - which accounts for about 1.7% of China's GDP - is a major headquarters of tech and auto companies, including Toyota, VW China, Foxconn and Intel. The impact will depend on the length of the lockdown. For comparison, the Shanghai lockdown lasted about two months. We continue to recommend investors invest in stocks in the consumer staples, healthcare and technology sectors.
NVIDIA: U.S. state licensing requirement for high-end GPU exports to China
Deere & Co: High pricing power in a sector with strong growth in demand
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|Author||Erste Group Research|
|Product name||Recommendation List|
|Topic in focus||Equities|
|Economy in focus||Eurozone, Germany, United States|
|Currency in focus||Euro, US Dollar|
|Sector in focus||Automobiles & Parts, Banks, Basic Resources, Chemicals, Construction & Material, Financial Services, Food & Beverage, Health Care, Industrial Goods & Services, Insurance, Media, Oil & Gas, Personal & Household Goods, Retail, Technology, Telecommunications, Travel & Leisure, Utilities|
|Name||ISIN||# Erste Group products|
|Advanced Micro Devices||US0079031078||1|
|Amadeus IT Group||ES0109067019||0|
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