11.09
Better Sell the energy sector, these are the latest indication of the sector exposed by Fabio Cappa, chief global strategist at Iccrea bank. “The index more representative of the European sectoral energy shares, the EuroStoxx energy, after scoring brilliant performances thanks to rising oil prices since last October started a correction that has led the industry to lose in a few weeks 20%, “says Cappa,” The minimum reached in mid-December in area 325 represents a very important technical level that, if violated would widen the margin of decline since 280 shares, bringing the stock prices of oil to those with 12 months ago a potential decline in the values of 13.85% at current levels. To reduce the chances of this appendix relevant corrective movement can be realized, contributing characteristic defensive sector in times of turbulence involving securities more volatile component. In terms comparative relative strength compared to the market as a whole, and with exactly the Eurostoxx 50, again witnessed an increase in volatility which is clearly augmented by the news relating to cuts in OPEC crude oil production estimated. In conclusion we believe properly adjust the exposure on the portfolio in line with benchmarks or slightly underweighted.