JP Morgan: The energy supercycle may be back! Chinese stocks are approaching the "buying zone"

JPMorgan Chase Chief Market Strategist Marko Kolanovic warned in a note to clients on Monday,Retailers, automakers, and airlinesAfter the industry has enjoyed the benefits of price increases in the past two years,The next big blow will be the cooling of inflation.

"Overall, we think the trade-off between growth and policy will remain challenging through the end of the year," Mr. Kolanovic saidReiterated warnings about the lagging impact of rate hikes。

U.S. stocks ended a four-day losing streak on Monday, shrugging off their worst weekly sell-off since March, with the S & P 500 up 0.4 percent. But U.S. stocks have been in a state of instability since August as investors consider the impact of persistently high interest rates on the economy.

Although Kolanovic has generally maintained a defensive stance towards the stock market, JPMorgan ChaseUpgraded view on global energy stocks to "overweight"The reason is that there are upside risks to oil prices in the near and long term.

Last week, the bank said oil prices could climb as high as $150 a barrel as the energy supercycle returns, and urged investors to buy energy stocks.

JPMorgan has selected 13 "major global stocks worth owning" for investors and named them the "Supercycle Club". Among the companies recommended were ExxonMobil, Marathon Oil, Baker Hughes and Cenovus Energy Inc., the Canadian oil sands producer. Globally, the bank also recommended buying Total, Saudi Aramco, China National Petroleum Corporation and Australia's Beach Energy Ltd.

"We are once again bullish on the global energy complex," Mr. Kolanovic wrote in Monday's weekly report, acknowledging that energy stocks have struggled to keep pace with the surge in crude oil prices, which have clearly led by a wide margin. But that could change as higher oil prices draw more investors into energy stocks.

Separately, Kolanovic reversed his bearish stance on global equities, saying that as global policy tightening stimulates long-term interest from overseas investors,The Japanese stock market is likely to outperform other major markets。

At the same time, thisIndustrial foreign exchangeThe strategist also said,Chinese stocks are now approaching the "buying zone".

Investors are likely to find trading opportunities in China's stock market next month, ahead of a series of economic data for October, including travel and retail sales during Golden Week, as well as property transactions. JPMorgan's bullish forecast is also based on the expectation of more new stimulus measures.