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Today's edition of the Saxo Morning Call features the SaxoStrats team discussing the continuing weakness of the US dollar as commodity prices recover ground and in the wake of key US equity indices hitting all-time highs Thursday.
Article / 19 August 2014 at 8:24 GMT

Daimler raised to top equity pick in Europe

Head of Equity Strategy / Saxo Bank
Denmark
By Peter Garnry

Our quant model is raising Daimler to its top equity pick in Europe with the conviction list still dominated by banks (see table). Daimler delivered a good Q2 result with revenue up 6.2% on the year and the EBITDA margin rising to 11.4% from 10.6% a year ago. Especially the US segment was very strong and with new product introductions and pricing power we expect the good results to continue over the coming 12 months.

Europe equities top picks














Ladbrokes delivers 6% 

Our portfolio of top equity picks in Europe is up 1.8% the past week driven by strong gains in stocks such as Ladbrokes, ArcelorMittal and Royal Bank of Scotland. The negative contributors are still Italian banks that continue to decline of the ECB's asset quality review programme scheduled to be released later this year.

Europe equities top picks performance



















The portfolio is down 6% since inception compared to flat performance for the MSCI Europe Index. The significant underperformance is due to the portfolio's significant overweight to financials.



















-- Edited by Clare MacCarthy

Peter Garnry is head of equity strategy at Saxo Bank
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Quant Corner - Europe equities

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