43% of Investors Expect European, U.S. Stocks to Perform in Line: BofA Survey — Market Talk
1046 GMT - More than four in 10 fund managers expect European and U.S. equities to perform in line with each other over the next year, according to a Bank of America survey. A net 5% of investors globally have underweight ratings for Europe, while 8% expect to put the region on underweight over the next year. BofA says a net 39% of respondents expect stronger growth over the 12 months, while a quarter foresee near-term economic acceleration. It adds that a net 39% of fund managers surveyed anticipate market gains in the months ahead. ([email protected])0818 GMT - Shares of European semiconductor companies are mixed after a Monday selloff that was triggered by calls for a slowdown in the development of advanced artificial-intelligence models over safety concerns. Such calls weighed on global chip stocks on Monday as investors worried that slower AI development could weigh on semiconductor demand. On Tuesday, shares of Dutch semiconductor-equipment maker ASML Holding and smaller rival ASM International are up 0.4% and 0.3%, respectively. BE Semiconductor Industries, the Dutch supplier of semiconductor assembly equipment, is up 0.4%. German chip maker Infineon Technologies declined 0.6%. STMicroelectronics shares fell 0.7%. ([email protected])0704 GMT - Bitcoin declines ahead of a crucial procedural vote in the Senate on proposed legislation that could offer regulatory clarity across digital assets. The U.S. Clarity Act provides a system for digital assets issuance, trading, and regulation. "U.S. regulatory clarity is improving for digital assets as concerns are considered in latest draft ahead of voting," HSBC's Amy Tyler and Ella Hewitt say in a note. Focus is also on the U.S. Federal Reserve's interest-rate decision due on Wednesday, as a rate rise could boost the dollar and weaken dollar-alternative assets. Markets price a 93% chance of a rate increase at the policy meeting, LSEG data show. Bitcoin drops 2.1% to $77,384. ([email protected])0512 GMT - Amid rising uncertainty, the question of what to buy looks a little hazy. The answer is probably less of what depends on cheap money, and more of what generates cash today, says Ipek Ozkardeskaya, a senior analyst at Swissquote. Energy and mining companies remain interesting in a world of expensive commodities and persistent inflation, while companies with low leverage should weather higher borrowing costs, she says. If AI becomes less about building the next gigantic model and more about monetizing what already exists, the next opportunity may lie with the users of AI rather than its builders, she adds. ([email protected]; X @JamesGlynnWSJ)