Standard Chartered believes that Europe, China, Mexico and Canada face increased trade uncertainty as Trump imposes higher import tariffs as a starting point of negotiations to bring down US bilateral trade deficits. China, facing deflationary pressures, is likely to try and offset US import curbs with higher exports to non-US markets and increased stimulus to boost domestic demand. The euro area faces a greater challenge, given self-imposed constraints to expanding fiscal policy. Given this, Standard Chartered expects the European Central Bank to cut rates to 2 per cent by end-2025 to support growth as inflation cools.

“While it is important to keep abreast with global events and their impact on markets, it is even more important to focus on an investment plan. Be disciplined, stay invested and don’t try to time the market too much. Ensuring a good diversification in your portfolio, maintaining a foundation portfolio and regularly adding to it when opportunities arise, would help achieve your long-term financial and life goals,” Steve Brice, global chief investment officer at Standard Chartered said.

Other wealth managers, such as , also favour US equities in 2025. See more commentary here and here.