FXStreet (Edinburgh) - Analysts at Danske Bank give their view on the oversold condition of equities in US and Europe. Key Quotes “In Europe, there are important cyclical factors that mean growth should hold up well”. “Easing of credit conditions, stronger domestic consumption and the continued improvement in the labour market are all supportive factors for better European growth”. “Our MacroScope model gives a clear indication that the global business cycle is about to turn more positive. In particular, the model signal is stronger for Europe than for the US, which should provide some support for European equities. This supports our overweight recommendation in Europe equities versus US”. “The risks for Europe come from external sources, particularly slowing growth in China and emerging markets. So far, European PMIs have been holding up surprisingly well but we need to watch out for whether there is a lagged impact from China/emerging markets”. For more information, read our latest forex news.