Despite recent strength in European equity markets, one market analyst doesn’t think it will last.

Speaking with BNN Bloomberg’s Paul Bagnell on Friday, Joshua Mahony, a senior market analyst at IG, said he thinks gains in European markets are on “borrowed time” and are beginning to broadly move lower Friday.  

“I think this [market volatility] has all got its footing in what happened last week, from the U.S. Federal Reserve, to the ECB [European Central Bank], to the payrolls figures. Markets really don't necessarily know how to take any of these signs of economic strength,” Mahony said. 

“We're seeing the same kind of thing today in terms of the Canadian jobs numbers.” 

The Canadian economy added 150,000 jobs in January, 10 times the median amount estimated in a Bloomberg survey. 

Despite Mahony’s bearish outlook on European equities, he recommends Yellow Cake Plc (YCA), International Consolidated Airlines Group S.A. (IAG) and AstraZeneca Plc (AZN). 

Mahony has a personal investment in Yellow Cake, while his family, firm and clients do not.

He, his family members, his firm and his clients do not own any of the other stocks mentioned above. 

Check out the full video at the top of the article to learn more.