Global equities are likely to trend higher over the next three months

• U.S. stocks possibly playing catch-up to other markets
• medium-term outlook is less certain

Near-term upward bias is supported by a resilient macro backdrop and muted fallout from recent tariffs.

Balance of risks worsens beyond the Q3:

• with equity markets already near their highs, recession risks appear largely priced in
• leaves the foundations of US market outperformance potentially weakening

Longer-term concerns include

• elevated U.S. valuations, which could come under pressure if Trump intensifies tariff-focused policies
• also signs global capital may be rotating out of the US raising questions about sustained equity inflows

Via a note Tuesday from HSBC.

I’m not sure about the “if Trump intensifies tariff-focused policies”, he seems keen to back down.

–

In the really short term, the focus is on the May month CPI report Wednesday morning US time (0830 US Eastern time):

Later this year,
ForexLive.com
is evolving into
investingLive.com, a new destination for intelligent market updates and smarter
decision-making for investors and traders alike.