Deutsche Bank says U.S. equities to maintain short-term outperformance amid tariff pause

Forex Short News

U.S. equities are likely to extend their recent outperformance in the near term, buoyed by easing trade tensions between Washington and Beijing, according to Deutsche Bank. From a note on Wednesday:

  • “Looking forward, short-term, we expect the S&P 500’s recent outperformance to persist as US companies are the bigger beneficiary of the tariff cuts”

However, analysts st DB tempered expectations for a sustained rally:

  • “Although lower than feared for now, in our view, tariffs will still be a bigger burden for US companies than for European companies,”
  • broader underperformance could persist “until a substantial cut in tariffs would bring relief”

S&P 500 update … I stuck in a horizontal line I’m eyeing for a period of work to be done:

This article was written by Eamonn Sheridan at www.forexlive.com.