Stock market today: S&P 500 hits fresh record close on stronger economic growth
Investing.com - UBS analysis indicates Energy stocks should be the main beneficiaries of current market trends, despite lagging year-to-date performance, according to a recent market report.
The report highlights that Commodity Trading Advisors (CTAs) are purchasing equity indices futures while retail investors are buying equity ETFs. UBS’s price momentum algorithm suggests buying more single names across all regions and sectors.
In terms of positioning, Utilities and Financials remain over-owned, while Communication Services and Materials show healthy build-up. The report advises it’s not yet time to buy Energy stocks as investors continue selling in this sector.
The analysis notes that the positive trend in the OECD G20 Composite Leading Indicator (CLI) persists, with recent revisions suggesting the business cycle is less mature than previously thought. UBS maintains high conviction for long cyclicals versus defensives in its regime model.
Global PMI new orders showed slight improvement in June from previously depressed levels, with significant dispersion across sectors - Financials, Staples and Real Estate PMIs demonstrated strong improvements, while Communication Services and Industrials PMIs experienced modest deterioration.
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