European stock market begins July on upbeat note

European stock markets have begun July with small gains, with the FTSE 100 index up 17 points or 0.22% at 7547 points in London.

Last Friday, the US Nasdaq Composite index posted its best first half of the year since 1983, as investors flocked to technology companies.

Mark Haefele, chief investment officer at UBS Global Wealth Management, warns share prices are priced as if a soft landing is certain…

“For the positive overall narrative to hold together, an ‘immaculate disinflation’ is almost a prerequisite, and from an investment perspective, equity markets are not priced for a recession materializing.

With stocks already priced for the near perfection of a soft landing, we see better risk-reward in high-quality bonds over equities.”