Investors fled to Europe and Japan after Trump’s price lists jolted U.S. markets, Bank of America says

Stocks on Wall Street and past were rocked through volatility in contemporary weeks, as U.S. President Donald Trump rolled out some price lists, paused others, and ramped up tasks on Chinese items to exceptional ranges.

Strategists on the Bank of America make clear the place probably the most capital flowing out of the U.S. could also be heading.

According to their information research, U.S. equities noticed an $8.9 billion outflow within the week to April 30. For each and every $100 influx to American shares for the reason that 2024 presidential election, there were a $5 outflow during the last 3 weeks, the funding financial institution’s strategists stated in a observe to shoppers on May 1.

At the similar time, European equities noticed a $3.4 billion influx, in step with the Wall Street financial institution.

Meanwhile, Japanese equities noticed a $4.4 billion influx within the week to April 30 — its largest week of inflows since April 2024.

In an indication that traders had been in a risk-taking temper, BofA stated that cryptocurrencies and excessive yield bonds noticed inflows of $2.3 billion and $3.9 billion previously week, respectively. Gold and U.S. Treasury bonds jointly had $6 billion in outflows.

Bank of America additionally printed that its personal shoppers, who jointly have $3.7 trillion in belongings, started to fret extra about deflation within the United States, relative to inflationary dangers during the last 4 weeks.

The financial institution stated its investor shoppers had been purchasing stocks of utilities and low-volatility high-dividend ETFs, usually thought to be “deflationary defensive” belongings, and had been promoting “inflation hedges” akin to debt tools, inflation-protected Treasury bonds, and fiscal sector ETFs.