Investors are turning defensive in the consumer stocks sector, according to JP Morgan with evidence from the latest quarterly earnings season suggesting specific equity stories are now in vogue.
Growth slowed with volume recovery languishing and earnings momentum negative with most downside from Spirits.
Volumes should pick up towards the end of the year, but the US bank said it is still trimming its numbers led by the beverages sector though that should mean 8% sector earnings growth nonetheless.
Favoured stocks listed in London include Reckitt and Diageo with a negative view on Haleon.
Pure European spirits groups are also out of favour with JP Morgan and in particular Remy Cointreau, Campari, Pernod and Essity.