Published On: September 12th, 2024Categories:

In this Flash report, we focus our attention on the EU Auto Sector. After the rally registered since the start of the year by (EU) Auto sector bonds, we are now becoming more cautious and downgrade the sector to an underweight position. Key risks include rising dealer inventories, weak used car pricing, and evidence of softening consumer demand, particularly in China and the US. 2Q24 results showed high-quality OEMs missed consensus estimates. We expect bond spreads to widen and performance to weaken in the second half of 2024 and therefore we move the (EU) Auto sector to underweight.

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