Keyword → EWG

HSBC Strategists Slash U.S. Equity Overweight, Favor Global Markets

HSBC’s global strategists sharply reduced their overweight position in U.S. equities, reallocating toward emerging markets and European stocks as economic momentum abroad appears stronger. The shift reflects concerns about U.S. equity valuations and changing growth prospects, signaling cross-border flow impacts for market participants adjusting risk exposures.

Global Markets Muted as AI Jitters and Geopolitical Tensions Influence Traders

Global stock markets were largely quiet, with muted trading in Europe and Asia as investors balanced concerns over AI sector pressure with geopolitical developments including U.S.-Iran talks. Futures for major U.S. indices remained lower, while commodities such as crude oil saw modest gains amid shifting risk sentiment.

Dollar Weakness Intensifies as Currency Markets Position for Fed Policy Pivot

The U.S. Dollar Index fell to its lowest level this month as traders increased bets on Federal Reserve rate cuts following weaker-than-expected labor market revisions. The Japanese yen strengthened for a fourth consecutive day amid growing expectations the Bank of Japan will maintain its hawkish stance and potentially raise rates in April.

Eurozone Inflation Slips Below ECB Target as Services Price Pressures Ease

Eurozone inflation fell to 1.7% in January 2026, dropping below the European Central Bank’s 2% target for the first time in years. The data, released on Feb. 4, suggests softer price pressures across key sectors, including services and energy, prompting fresh debate among economists on the ECB’s monetary policy path. Although core inflation moderated modestly, the risk of prolonged subdued inflation could influence future rate decisions.