HSBC says high levels of uncertainty surrounding the economy mean U.S. assets will stay under pressure. Questions about the level of tariffs on which products from which countries ahead of the April 2 start date set by President Donald Trump have led to a “confidence shock” in households and businesses, the London-based bank said. It noted that consumer sentiment has weakened, price expectations have risen and consumer expectations regarding the labor market have worsened. “Uncertainty around the 2 April deadline may also be very high. But what matters most to us is the probability of these unusually high levels of uncertainty disappearing entirely beyond 2 April. That probability seems pretty low, in our view,” Max Kettner, HSBC’s chief multi-asset strategist, wrote in a research note Tuesday. “We, therefore, continue to think U.S. assets will remain challenged in the near term,” Kettner added. Against rising doubts about the U.S., stocks in Europe have scored their largest-ever quarterly gain compared to the S & P 500 in records going back to 1991. The Euro Stoxx 50 has so far outperformed the broad U.S. market index by 18.5 percentage points in the first quarter of 2025. .STOXX50 .SPX YTD mountain Stoxx 50 versus the S & P 500 in 2025 Kettner is also more bullish on Europe rather than the U.S. He is overweight on Eurozone and emerging market equities and underweight U.S. stocks. Get Your Ticket to Pro LIVE Join us at the New York Stock Exchange! Uncertain markets? Gain an edge with CNBC Pro LIVE , an exclusive, inaugural event at the historic New York Stock Exchange. In today’s dynamic financial landscape, access to expert insights is paramount. As a CNBC Pro subscriber, we invite you to join us for our first exclusive, in-person CNBC Pro LIVE event at the iconic NYSE on Thursday, June 12. Join interactive Pro clinics led by our Pros Carter Worth, Dan Niles and Dan Ives, with a special edition of Pro Talks with Tom Lee. You’ll also get the opportunity to network with CNBC experts, talent and other Pro subscribers during an exciting cocktail hour on the legendary trading floor. Tickets are limited!
