BNP Paribas Asset Management Highlights AI Growth and Oil Stabilization

Ecaterina Bigos, CIO for Core Investments Asia ex-Japan at BNP Paribas Asset Management, has outlined a strategic outlook focusing on structural growth drivers amidst a backdrop of heightened geopolitical uncertainty and market volatility. The analysis highlights a divergence between short-term volatility and long-term structural trends, specifically within the technology and energy sectors. Bigos suggests that while the macro environment remains unstable, specific capital expenditure trends are providing a floor for certain asset classes. Regarding energy markets, the firm anticipates that oil prices will find a stabilization range between $80 and $90 per barrel by mid-summer. This projection suggests a period of consolidation following recent fluctuations. In the technology sector, the firm points to a 'structural advantage' fueled by AI-related capital expenditure. This trend has already led to a notable rerating of tech assets, and BNP Paribas expects this momentum to persist through the end of the year.