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1. Traders are betting on it, analysts are flagging it, and now central bankers are talking about it too: euro at $1.20.

Just how important is that level now that it’s on everyone’s radar?

When a big round number becomes the focus, the outcome tends to be binary. Either the market hits it and stalls into a wall of offers that marks a medium-term top, or it breaks through and becomes just another marker on the way higher. Rarely, if ever, do we see consolidation around that level. I cannot recall the last time a policymaker mentioned a specific exchange rate level. But that’s what European Central Bank Vice President Luis de Guindos did Tuesday, saying that while a move to $1.20 is “acceptable”, further gains would make policy makers’ task more complicated.

2. “It seems that the rising euro is starting to weigh on European equities.”

With the earnings season about to kick off, the debate about euro strength is gaining traction, especially as European large caps generate over half of their revenue outside the continent.

It’s no surprise that domestic shares have been in favor over those with international exposure. A Goldman Sachs basket of these stocks is skewed toward financials, utilities and telecoms. Small caps, which are typically more domestic, have also extended their outperformance in recent weeks. The Stoxx 600 Small Cap index is up 5.8% in the past quarter, while the large cap equivalent is flat.

3. With the chip equipment makers' relatively attractive valuations, the best value may be found on the chip-factory floor.

The largest chip-manufacturing-equipment companies -- including Applied Materials, Lam Research and ASML -- are in a market that is growing fast as AI booms. Capital spending on equipment to make advanced chips like those from Nvidia is expected to nearly double between last year and 2028, according to a recent estimate from industry group SEMI.

Yet investors haven't given chip-equipment makers the credit they have showered on AI chip designers, from Nvidia to Advanced Micro Devices and Broadcom, as well as chip producers like Taiwan Semiconductor Manufacturing Co. Applied Materials' stock has fallen 23% in the past year, leaving its price at about 18 times forward earnings. Nvidia's stock is up more than 27% over that period, putting it at about 32 times forward earnings.

The big reason for the divergence is the trouble equipment makers like Applied and Lam face in China. Chinese sales, which accounted for a quarter of Applied's revenue and nearly a third of Lam's in their most recent quarters, are taking a beating because of tightening U.S. export controls.

However, there is little reason to question whether the longer-term trend -- a rise in chip production -- will continue.

4. Not all real estate is created equal.

Around 16% of New York City’s office stock is empty, versus 1% of its apartments. Turning Manhattan’s unloved offices into apartments is becoming a profitable venture.

5. Time to buy the luxury dip?

For UBS, it's time to turn less bearish. The Swiss bank has lifted its rating on European luxury to "benchmark" from "underweight," arguing the selloff has created a tactical opportunity despite ongoing risks in China.

Strategist Andrew Garthwaite at UBS says the sector is almost three standard deviations oversold relative to the market, a rare signal that has historically preceded a rebound. He also notes earnings revisions have been better than the stocks' performance, suggesting markets have priced in excessive pessimism.

Structural drivers also support the new stance, including U.S. tax cuts for the wealthy and Wall Street's surge to previous highs, which should boost consumption.

However, UBS stops short of an "overweight" rating due to factors including a still "problematic" outlook for China's housing market and the sector's vulnerability to tariffs.

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