HSBC moved its global equities stance to "neutral" from "max overweight" on Monday. The brokerage cited renewed Middle East tensions and worries over potential AI regulation ahead of the US midterm elections. It also upgraded developed-market sovereign bonds.
HSBC downgraded its stance on global equities to "neutral" from "max overweight" on Monday, citing renewed geopolitical tensions in the Middle East and worries over potential AI regulation ahead of the US midterm elections.
The bank had been max overweight stocks and max underweight sovereign bonds since mid-March. HSBC said in its note: "we just can’t have the same level of conviction any longer".
Bonds, however, moved the other way. HSBC double-upgraded developed-market sovereign bonds to "overweight" from "max underweight". It said they could gain support from a potential AI slowdown if Democrats win, or from gridlock in the midterms that could ease fiscal worries.
Within equities, HSBC is more cautious on the euro zone, citing concerns around France, and on emerging markets because of bearish AI sentiment in the region.
Separately, the brokerage cut its "overweight" stance on gold and moved oil higher to an "overweight" rating.
Source: Investing.com (Reuters)
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