HSBC downgrades US stocks, turns bullish on European equities

Reuters

Mon, Mar 10, 2025, 4:33 AM 1 min read

(Reuters) - HSBC connected Monday downgraded U.S. equities, citing uncertainty astir tariffs, portion turned bullish connected European stocks pursuing boost from Germany loosening its fiscal reforms.

The brokerage lowered U.S. equities to "neutral" and raised standing connected European stocks, excluding UK stocks to "overweight" from "underweight."

The Trump administration's monolithic moves connected commercialized and different policies person injected uncertainty, portion a projected $1.2 trillion European fiscal bazooka and the emergence of China arsenic the tech contention person are marking a imaginable turning constituent for capitalist superior distant from the United States.

The S&P 500 has pulled backmost astir 6.1% from its February 19 grounds precocious connected worries that the commercialized warfare volition wounded firm nett and dilatory growth.

"It is important to accent that we are not turning antagonistic connected US equities - but tactically, we spot amended opportunities elsewhere for now," said HSBC's Global Equity Strategist Alastair Pinder said.

Morgan Stanley Equity Strategist Michael Wilson believes the S&P 500 could autumn different 5% to 5,500 points by mid-year, earlier ending the twelvemonth astatine astir 6,500, which is simply a 12.7% upside from the benchmark index's past close.

"The way is apt to beryllium volatile arsenic the marketplace continues to contemplate these maturation risks, which could get worse earlier they get better," Morgan Stanley's Wilson said successful a enactment connected Monday.

(Reporting by Kanchana Chakravarty and Medha Singh successful Bengaluru; Editing by Shinjini Ganguli)