Major asset managers, including Europe's Amundi, plan to scale back euro-long positions and reduce bullish bets on EU equities, Reuters reports. The move follows retaliatory US import tariffs imposed on the region in early April.
Edmond de Rothschild Group analysts warn that escalating trade tensions will pressure European equities, creating a bearish market environment. At the same time, their further growth is unlikely, according to experts of the organization.
Shares of German automakers dropped 2% following the American president announcement of 25% tariffs on imported vehicles.
Former ECB President Mario Draghi calls for urgent EU industrial policy reforms, emphasizing three critical needs: stronger coordination, faster decision-making, and massive investments in strategic sectors.
Legal & General Investment Management has scaled back long positions on the euro, while Arbuthnot Latham Bank scaled back expectations for Eurozone equities.
Russel strategists reaffirm their positive outlook on EU securities, citing improving fundamentals and attractive valuations as the region's long-term economic prospects brighten.