A JP Morgan Asset Management global markets strategist said the recent oil-price
decline, prompted by a temporary US–Iran peace agreement due Friday, has cooled
energy prices and opened selective value opportunities in European equities
beneath headline indices. With the yield curve steepening, bank stocks “still
have further upside," and chemicals look attractive given their energy
sensitivity and would gain if the recent oil shock reverses. He added market
expectations that the ECB needs further hikes “appear overestimated.” He said
2025’s theme of embracing global asset diversification should continue as
investors begin to navigate past the worst of the shock.
