HSBC strategist Kettner reduces allocation to US stocks, favors other global regions

The team led by Max Kettner remains firmly risk-on, noting that key cyclical indicators such as spending and manufacturing have improved over the past two months. Kettner stated, "We prefer this stronger cyclical momentum and are currently taking a more overweight stance on equity markets outside the United States." The strategists believe that the positive trends in technicals, positioning, and market sentiment are sufficient to offset volatility caused by geopolitical issues, trade frictions, and concerns about artificial intelligence.