The shift in market sentiment away from US stocks (^GSPC, ^IXIC, ^DJI) and toward international equities has been swift and significant.
HSBC head of emerging markets and global equity strategist Alastair Pinder attributes this shift to a change in government responses to US trade policies, particularly the fiscal policies introduced in China and Europe.
“I think really the big catalyst which has caused this shift out of the US and into international stocks is the way that governments are reacting to Trump’s policies,” Pinder tells Catalysts host Madison Mills.
Pinder notes that European fiscal spending, particularly in Germany, has offset potential tariff-related headwinds, improving the region’s growth outlook.
Regarding Europe’s potential, he states, “That, for me, is a game changer. That is a seismic shift in Europe’s economy, and that’s why I think you have a bit more longevity now in the European equity market trade.”
Additionally, Pinder emphasizes the tariff’ impacts on European stocks may be less severe than anticipated due to the region’s varied exposure.
To watch more expert insights and analysis on the latest market action, check out more Catalysts here: https://finance.yahoo.com/videos/series/catalysts/
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