GO
| HSI1 | 23,350.03 | +295.00 | 304.95B |
| HSCEI1 | 7,699.76 | +87.28 | 86.75B |
| Back Zoom + Zoom - Block Traded | |
|
Bank J. Safra Sarasin Cuts Gold Allocation to Neutral, Maintains Slight Overweight on Equities
2026-07-03 13:09:59 Bank J. Safra Sarasin FX strategist Claudio Wewel wrote in an article that a stronger USD has cooled the equity market rally. He said AI remains a key driver of US economic growth. However, amid a more hawkish stance from central banks, a stronger USD and elevated equity valuations, investors should remain cautious in taking risks and adopt a more selective strategy. The rally in global risk assets gradually weakened in June, with global equities peaking on 2 June. As the Strait of Hormuz reopened and oil prices retreated to pre-war levels, market focus shifted from the Iran situation to monetary policy. The first Federal Reserve meeting chaired by Kevin Warsh triggered a hawkish repricing in the interest rate market, lifting the USD exchange rate. After a volatile June, global equities broadly closed back at early-month levels. Given the positive macro outlook and continued earnings growth, the bank maintained a slight overweight on equities. However, it adjusted portfolio allocations by rotating funds from emerging markets to developed-market companies to lock in gains from the strong rally over recent months, while addressing the challenges posed by high interest rates and a stronger USD to emerging markets. The bank lowered its gold allocation to Neutral. The environment of elevated interest rates and a stronger USD means precious metals may struggle to regain upward momentum in the near term. ~ AASTOCKS Financial News Website: www.aastocks.com | |