[Click eStock] February Developed Markets Index Slightly Firm... S&P 500 Index Expected Band Raised

On the 6th, Korea Investment & Securities predicted that the advanced country indices for February in the US and Japan would remain at a slightly firm level. Although the 12-month forward price-to-earnings ratio (12MF PER) rose to 17 times, earnings forecasts for companies in the US, Europe, and Japan have improved compared to the beginning of the year.

The short-term regional investment attractiveness ranking remained Europe > US > Japan. Choi Bowon, a researcher at Korea Investment & Securities, stated, "Both the US and Europe have medium- to long-term upside potential, but this reflects the relatively lower valuation burden in Europe," adding, "The long-term investment attractiveness ranking is US > Japan > Europe."

The S&P 500 index for February is expected to remain slightly firm. Accordingly, the expected range for February is forecasted to be 4700?5150. Researcher Choi Bowon said, "The 12MF PER of the S&P 500 index has exceeded 20 times, and as earnings announcements for mid- and small-cap stocks and cyclical stocks are underway, attention should be paid to temporary pullbacks. However, as the earnings season progresses, the 12-month forward earnings per share (12MF EPS) has increased, and expectations for interest rate cuts in the first half of the year continue, which will limit downside pressure on the index."

He also anticipated intensified differentiation even within the same industry. Among consumer discretionary companies, those reflecting strong year-end consumption in their earnings; among industrial companies, defense stocks with limited supply chain impact; and among real estate investment trusts (REITs), companies operating nursing medical facilities with relatively sustained demand were identified as requiring selective approaches.

The expected range for the Euro Stoxx 50 index in February is forecasted to be 4470?4870. This is because indicators that raise expectations for interest rate cuts in the first half of this year are being released consecutively, and expectations for earnings improvements of large companies are increasing.

Additionally, in February, it is expected that major European indices will move up and down together rather than showing differentiation by country. He explained, "This is because external factors will have a greater impact than some inflation and manufacturing indicators," adding, "Rather, a strategy responding to sectoral fluctuations due to earnings announcements is effective."

The expected range for the Nikkei index in February is projected to be 34,200?37,800. Researcher Choi Bowon said, "With the 12MF PER at 20 times and valuation burdens higher compared to the US, short-term upward pressure is expected to be limited."

This content was produced with the assistance of AI translation services.