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Trump’s Tariff Delay Opens Window To Book Profits In Equities, Says Deutsche Bank

U.S. President Donald Trump delayed imposing tariffs on $160-billion worth Chinese imports till December.

 (Photographer: Alex Kraus/Bloomberg)
(Photographer: Alex Kraus/Bloomberg)

Deutsche Bank has advised its clients to use temporary reprieve in the U.S.-China trade war to book profits in equity markets.

“We have been negative on equity markets (globally) for the past couple of months,” Tuan Huynh, chief investment officer for Asia Pacific at Deutsche Bank, told BloombergQuint in an interview. “We have shifted our position on equities to ‘Underweight’ from ‘Overweight’.”

The bank, according to Huynh, has also reallocated some of its resources into U.S. fixed income instruments and emerging market currencies from equities.

We do think clients can still take some profits in the equity markets. U.S., Europe and even China equities are showing double-digit gains so far this year. Hence, the short-term relief over the next few days can be used to book profits.
Tuan Huynh, Chief Investment Officer (Asia Pacific), Deutsche Bank

U.S. President Donald Trump delayed imposing tariffs on $160-billion worth Chinese imports till December. Now items such as smartphones, laptops, and children’s toys would only be subject to tariffs after Dec. 15.

Apart from the U.S.-China trade war, Deutsche Bank also expects external risks stemming from Hong Kong protests and Brexit uncertainty to impact stock markets in the near term.

Watch the full interview here:

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