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#SaxoStrats - Market too negative on European insurers

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February 16, 2016 equities, eur, eur usd, eurgbp, eurjpy, euro, euro area, euro crisis, euro dollar, euro rates, euro strength, euro yen, euro zone, eurocrisis, eurodebt, eurodollar, europa, europe, europe growth, european, european banks, european central bank, european central banks, european economy, european recovery, european union, eurozona, eurozone, eurozone crisis, eurozone economy, eurozone inflation, eurozone recovery, eurusd, fin, finace, finance, finance industry, finance minister, finance ministers, finance news, finance sector, financial, financial crisis, financial institution, financial institutions, financial market, financial markets, financial services, financial stocks, financial technology, financial times, financial transaction tax, financials, financing, finland, fuin, insurance, insurance companies, insurance company, insurance stocks, insure, macro, mario draghi, mark carney, market, market reaction, markets, rate, rate cut, rate hike, rate rise, rates, rates decision, saxo tv, saxostrats, tradingfloor.com
Shares of the iShares STOXX Europe 600 Insurance ETF are down 22% since early December driven by recent market turmoil hitting investment income for insurers, and Saxo Bank's Head of Equity Strategy Peter Garnry thinks this is far too negative a view.

"This is not a long-term strategic position as the industry will come under increasing pressure from negative rates, regulation on regulatory capital and increasing competition on premium.", according to Peter.  

Entry: buying EXH5:xetr at market.
Stop: trailing stop price EUR 22.36, steps of EUR 0.12

Target: EUR 27.00