Bloomberg: investors massively reorienting to European stock market

Investors leave the US markets and massively reorient their portfolios to European funds, equities, and government bonds amid the announcement of US tariffs and subsequent turmoil in global markets.

Morningstar Direct data shows total outflow of funds from US this month. In the first two weeks of April alone, client cash outflows from US-focused funds managed by Amundi, UBS Group AG, and State Street Corp. totaled $4.5 billion.

Even investors that used to be optimistic regarding American stocks are now worrying due to Trump's continued tariff policies. 

European funds managed by iShares, Amundi, and UBS, on the other hand, received the largest liquidity inflows of $2.77 billion.

Germany and France are two of Europe's largest economies and are particularly exposed to US tariffs. Their funds, which attract mostly local clients, have seen particularly sharp capital inflows.

According to Bloomberg, Trump's tariffs will shrink global GDP by about $2 trillion by the end of 2027.