HSBC cuts global equities to 'neutral' on Middle East, AI risks
HSBC•HSBC downgraded global equities to “neutral” from “max overweight,” citing Middle East tensions and potential AI regulation. It raised developed-market sovereign bonds to “overweight,” cut gold to “overweight,” and moved oil to “overweight.”
1. Portfolio stance changes
HSBC said it had lowered its conviction in equities after holding a “max overweight” stance since mid-March, citing renewed geopolitical tensions in the Middle East and worries about potential AI regulation ahead of the US midterm elections. The brokerage double-upgraded developed-market sovereign bonds to “overweight” from “max underweight,” citing possible support from an AI slowdown or election gridlock that could ease fiscal worries.
2. Regional and commodity views
HSBC said it was more cautious on the euro zone, citing concerns around France, and on emerging markets due to bearish AI sentiment in the region. Separately, it cut its “overweight” stance on gold and moved oil to “overweight.”
