May saw a pullback in equities amid further escalation of the trade conflict between the US and China. Both countries hit each other with new tariffs and hints were also made by China at the possibility of banning exports of rare-earth materials to the US. A strong service sector and healthy households weighed in on the positive side for the global economy, Nordea’s investment strategists write in the Global Asset Allocation Strategy for June.
However, with continued geopolitical uncertainty and key industrial indicators not demonstrating a turnaround, uncertainty remains the name of the game and the strategy for June is to stick to neutral on equities, they write.
Find out what our strategists think about the geographical allocation of equity investments and their view on the fixed-income markets in this month’s edition of the Global Asset Allocation Strategy (pdf, 1 MB).
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