The Point for CEEMEA

Research evidence excerpt

The Point for CEEMEA

Point |

Tuesday, 16 June 2026

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Economic Outlook & Strategy - Global

European Equity Strategy - Interim Peace Agreement: Broadening Potential Imbalances – EM’s Role and Policy

The interim peace agreement has triggered a further relief rally in European Responses

equities, extending the rebound seen in past weeks. The STOXX 600 is trading at

all-time highs, suggesting that a meaningful portion of geopolitical risk premium

has already been priced out. However, index-level strength masks a more uneven

recovery beneath the surface, with a broad range of sectors and stocks remaining

below pre-conflict levels. This dispersion creates scope for a second phase of the

recovery, characterised by greater rotation and market broadening. This remains

possible over the near-term as positioning readjusts and fundamental headwinds

abate. However, the AI theme is likely to remain the key structural driver, backed

by fundamental strength/momentum. Germany and Sweden appear therefore

most attractive on a tactical horizon, alongside consumer-related sectors,

particularly Autos, while Tech remains a key Overweight in our sector strategy. We

also reassess the fundamental outlook in Europe to identify longer-term

opportunities.

Beata M Manthey, Ph.D. | David Groman | Nikhil N Jadhav, CFA

Sector

Artificial Intelligence - Takeaways from the Research and Applied AI Summit

Research and Applied AI Summit 2026 represents the focus of leading

technologists working at the frontier of AI: Recursive Self-Improvement, Token-

Cost Efficiency, World Models, and Physical AI. Scientists presenting from