Barclays: Monetary policy divergence is good for US stock market

On March 26, analysts at Barclays said in a report that due to factors such as the divergence of monetary policy operating space, the U.S. monetary policy still supports risky assets much more than Europe. "When it comes to monetary policy, the contrast is clear: while Europe is more affected by the oil shock, markets are still reflecting expectations of further policy tightening, while the Federal Reserve has more room to ignore recent energy-driven inflation and tend to relax policy rather than resume interest rates," the analysts said. "They say this policy asymmetry has widened the gap between U.S. and European stock markets. "The United States continues to provide a clearer mix of earnings growth of more than 10 percent, non-cyclical AI-driven capital expenditures, margin support and policy flexibility, which provides reasons for continuing to be optimistic about the performance of U.S. stocks relative to European stocks." (Zhitong Finance)