Bank of America expects European stocks broadly to rise this year, but its key underweight call is the pharmaceutical sector, and the recommendation has nothing to do with talk of reining in U.S. drug prices.
Bank of America’s call on European pharmaceuticals — whose members including AstraZeneca AZN, -0.42% AZN, +0.47% , GlaxoSmithKline GSK, +0.04% GSK, -0.16% , Novartis NVS, +0.68% NOVN, +0.66% , Roche ROG, +0.54% and Sanofi SAN, +0.14% SNY, +0.97% — is based on how closely they historically track U.S. bond yields TMUBMUSD10Y, -0.67% and the U.S. dollar DXY, +0.12%
