PARIS Deutsche Bank's European equity strategists on Thursday said they had "overweight" positions on the UK and Switzerland and "underweight" positions on Germany and France, with political risks one of the negative factors for the French market.
"Improving macro momentum has been the key driver of the European equity market over the past eight months, leading cyclical country indexes, such as Germany and France, to outperform," Deutsche Bank's team said in a research note.
"We expect both to underperform going forward, as the recent surge in global growth momentum starts to fade," added the note.
Deutsche Bank added that the key negative risk for the Paris stock market .FCHI was a victory for far-right National Front leader Marine Le Pen in the French presidential election, although current opinion polls show Le Pen as likely to lose to centrist candidate Emmanuel Macron.
(Reporting by Sudip Kar-Gupta; Editing by Amrutha Gayathri)