HSBC cuts global equities to neutral from maximum overweight
A separate HSBC Asset Management note published Monday said a recent AI-led tech sell-off exposed fragility in mega-cap indexes.
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HSBC has cut its view on global equities to neutral from maximum overweight. The move takes the bank away from one of the most aggressive bullish stances on stocks this year. It comes after a period in which appetite for risk had been building.
Recent purchasing managers' index (PMI) readings, which survey business activity, showed only modest, uneven softening rather than a sharp drop. A reduction in conviction from a maximum bullish position tends to reduce the buying that has been supporting broad equity indexes.
A separate note from HSBC Asset Management, published Monday, said the recent AI-led tech sell-off had exposed fragility in mega-cap indexes such as the S&P 500 and the Nasdaq. It argued that equal-weighted benchmarks and overlooked sectors could benefit, and that globally diversified portfolios are well placed.
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