Q2 outlook & lessons from U.S. "Liberation Day”
Some analysts say April is a month of historic volatility and this time around it ended on that same note, with the S&P 500 wiping out a 2 per cent slide for the first time since 2022. Hopes that trade talks will prove constructive firmed up sentiment, after a report that the US has been proactively reaching out to China through various channels. For a look back at month and share his outlook for the Q2, CNBC Africa is joined by Will Hobbs Head of Multi-Asset Wealth at Barclays UK Wealth Management.
Fri, 02 May 2025 15:56:30 GMT
Disclaimer: The following content is generated automatically by a GPT AI and may not be accurate. To verify the details, please watch the video
AI Generated Summary
- Germany's fiscal policy shift and the impact on the eurozone.
- US-China trade tensions and the reconfiguration of global trade dynamics.
- Barclays' successful investment approach emphasizing Asia and Europe over US assets.
April has been a month of historic volatility, culminating in the S&P 500 erasing a 2 per cent slide for the first time since 2022. With hopes that trade talks will yield positive results, sentiments have been buoyed after reports of proactive outreach from the US to China through various channels. Will Hobbs, Head of Multi-Asset Wealth at Barclays UK Wealth Management, joins CNBC Africa to reflect on the past month and share his insights for the second quarter. Hobbs emphasizes two pivotal global shifts - the alteration of German fiscal stance and the fallout from the US President's trade policies. Germany has responded to pressures from the far-right and a confrontational US administration, potentially reshaping the trajectory of the eurozone. In contrast, the US trade agenda has spotlighted China as its primary adversary, reshaping global dynamics and investor concerns. Acknowledging geopolitical uncertainties, Hobbs highlights Barclays' successful forecasting in adapting to market shifts, particularly capitalizing on opportunities in Asia and Europe while exercising caution with US assets. Looking ahead, Hobbs underscores the influence of technological innovations in driving economic trends, advising investors to focus on the medium to long term and remain diversified. Regarding market performance, Hobbs suggests a shift towards European and Asian stocks, spurred by narrowing earnings differentials and ongoing debates on US asset valuations. He emphasizes monitoring policy consistency in China and the potential for Europe to enhance capital markets integration and reduce reliance on US investments. In a period of rapid technological advancements, Hobbs encourages investors to explore diverse opportunities and adopt an open-minded approach to navigating global markets. As the investment landscape evolves, Barclays' strategic outlook leans towards a multi-regional investment approach, signaling promising prospects beyond traditional US-centric portfolios. With future discussions on bond equities correlations on the horizon, Hobbs looks forward to exploring the evolving dynamics of asset allocation in a fast-changing market environment.
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