JPM cuts ArcelorMittal and Salzgitter as EMEA metal stocks face near-term risks
** J.P.Morgan recommends reducing EMEA metals exposure in the near-term to mitigate trade and tariff-related risks ahead of the U.S. presidential election on Nov. 5
** It says increased protectionism if Donald Trump wins the election could benefit firms with U.S. production such as SSAB SSABa.ST and Acerinox ACX.MC, but pose a risk to exporters like ArcelorMittal MT.AS and Outokumpu OUT1V.HE
** It adds China's annual steel exports of around 100 Mt will continue to depress EU steel prices, with lower profitability for European steelmakers set to persist into 2025
** JPM cuts ArcelorMittal to "neutral" from "overweight", expecting limited mid-term organic FCF generation due to lower steel prices
** It cuts Salzgitter SZGG.DE to "underweight" from "neutral", saying the acute weakness in German steel demand will remain a headwind in 2024/25
** JPM puts Acerinox on a negative catalyst watch into Q3 results, seeing further earnings downgrades
Reporting by Amir Orusov and Anastasiia Kozlova
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