Another tech buyer comes into the open

Reuters

Another tech buyer comes into the open

2024 8월 7 일, 오전 9:59 GMT

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STOXX Europe 600 up 1.1%

Novo Nordisk trims profit outlook

Banks up after 5-day losing streak

Wall Street futures gain, tech up

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ANOTHER TECH BUYER COMES INTO THE OPEN

Barclays believes leveraged positions haven't all been cleared out and "erratic" price action is likely to continue.

Yet, the UK bank says investors should look again at buying tech at less expensive valuations, joining a growing chorus of those seeing the selloff as a buying opportunity.

"We buy Tech on dip," write a team of Barclays strategists led by Emmanuel Cau, slapping an overweight rating on the space.

The STOXX Tech index .SX8P, which has fallen this month as much as 20% from mid-July levels, was set for a second day of gains. ASML ASML.AS is off 21% from the January low hit during the rout.

On Tuesday, Deutsche Bank upgraded Tech to neutral.

Strategist Maximilian Uleer said he still remained cautious about further earning downgrades, but nevertheless valuations looked fair and selective buying opportunities had shown up.

On the same day, HSBC's private bank said: "The froth has been removed from the valuations... There are opportunities in technology, and technology is not just the Magnificent 7"

The DB chart below shows Europe's tech PE is now back at its 10-year average.

(Danilo Masoni)

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FOR WEDNESDAY'S OTHER LIVE MARKETS POSTS:

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BOJ SAVES THE DAY CLICK HERE

Tech PE https://tmsnrt.rs/3SAxTIX

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