UBS adds Intesa Sanpaolo, Italy’s biggest retail bank, and Swiss engineer ABB to its “Global Top 40 Stock List” saying the companies have substantial exposure to a European recovery into 2014.
“We continue to expect equities to perform well in the current economic & policy environment. We are ‘overweight’ the US & UK, as we expect strong economic momentum to continue in those regions,” UBS writes in a note.
It removes Volvo, the world’s second-biggest truck maker, and some other global companies to bring the list in line with its global sector and regional outlook.
UBS prefers financials, technology and healthcare sectors, but is cautious on the consumer sectors and telecom companies.
Intesa, ABB and Volvo shares are down 0.9 to 1.5 percent, in line with a broader market sell-off on concerns of a sooner than expected cut in U.S. stimulus.
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