JPMorgan analysts downgraded the European mining and steel sectors, warning that escalating Middle East tensions could negatively impact metal prices and corporate earnings. The bank lowered its ratings for mining companies Anglo American and First Quantum Minerals, as well as steelmakers ArcelorMittal and Voestalpine.
Simultaneously, JPMorgan downgraded United Arab Emirates equities to neutral, shifting its regional preference toward Saudi Arabian stocks. The bank expressed concern that a prolonged conflict could damage the UAE’s reputation as a safe-haven financial hub.
The strategic shift involved removing three UAE stocks from JPMorgan’s top 10 regional recommendations. In their place, the bank added Saudi Arabia’s Al Rajhi Bank to its list of preferred assets.