📝Our Correction Monitor Not Flashing Oversold: Danske

Many major equity benchmarks slipped into correction territory last week. Japan, Europe, EM and Sweden are all down at least 10%, while the US is about 5% lower. For global portfolios, US resilience is a relief; the scale of central-bank repricing and energy prices could easily have left global equities in a worse place.

However, for investors in Europe it removes a potential source of positioning support that might otherwise help a rebound. Our correction monitor is still not signalling oversold conditions. With neither positioning nor valuation providing a clear cushion (equities were expensive going into this) oil will continue to govern the tone in markets this week. - Danske Bank