Although we reacted to the downside on the news yesterday, the broader market has recovered, the overall market is starting to absorb this news more easily than we have seen over the last few months, despite volatility in oil and oil and gas shares.

Atif Latif

Categorized in : Energy

Thomas Cook, for example, is heavily skewed toward Turkey, whereas airlines can benefit from a more geographical spread, with this being the start of the holiday season and normally a busy time for tour operators, we could see more pressure as many change travel plans.

We have seen Brexit poll volatility, but much of the recent movement in the market looks like it is pricing in Remain, this would result in a more aggressive sell off if the Leave campaign wins.

Credit risk concerns, lack of credible asset quality, balance sheet issues and a lack of reserves... all this makes for gloomy reading for those with EU bank exposure.

Although we reacted to the downside on the news yesterday, the broader market has recovered, the overall market is starting to absorb this news more easily than we have seen over the last few months, despite volatility in oil and gas shares.

The guidance, to increase and stabilise margins from a low base, will be tough but achievable, the margin recovery story is in its infancy and we see the opportunity for this to be the key driver ... Overall, we remain positive.

Mali attacks (have led to) follow-on concerns. by Atif Latif

Mali attacks (have led to) follow-on concerns.

Even the China-exposed names, such as miners, we think have fallen too far. Much of the negative news is priced in as the PMI data was not a surprise and we were expecting a weak print.

Housebuilders were weak on expectations of a quicker rate hike. Now, these are being bought again as a play on rates staying low for longer, we think concerns regarding rate rises and the likely impact on the sector have been overplayed.

CF held talks with Yara last year... and we still see the potential for continual activity in this space.

Oil is having a nice move after more geopolitical tensions in the Middle East over Yemen. Saudi has intervened via a military operation but, to be clear, (it) has at the moment led to no disruptions in oil supply.

Even with the rate rises in the U.S. looming, we see the economy starting to get back on track and be able to handle rate rises.