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Major European stock markets have outperformed their US counterparts so far this year, as investors have turned more cautious amid uncertainty over president Donald Trump's tariff agenda.
Markets around the world have experienced volatility this year over concerns that a trade war could tip the global economy into a recession, though US stocks have seen particularly big swings on developments around tariffs.
The S&P 500 (^GSPC) is down 6% year-to-date, while the tech-focused Nasdaq (^IXIC) is around 10% in the red and the Dow Jones Industrial Average (^DJI) has fallen 5.5%.
By comparison, the pan-European STOXX 600 (^STOXX) is up 3.9% year-to-date. The UK's FTSE 100 (^FTSE) is 3.2% in the green, while Germany's DAX (^GDAXI) has gained 12.6% and France's CAC 40 (^FCHI) has advanced 2.4% so far this year.
(^STOXX)
In a note on Tuesday, HSBC (HSBA.L) head of equity strategy, Americas Nicole Inui said her team had lowered their year-end target for the S&P 500 to 5,600 points, down from 6,700.
She said that this incorporated the "impact of slower US growth and tariff pressure on earnings".
Read more: Stocks to watch this week: Apple, Microsoft, Shell, HSBC, Lloyds and AstraZeneca
At the same time, Ryan Detrick, chief market strategist at Carson Group, told Yahoo Finance that key technical signals suggest that recent US market lows may have marked the bottom for the year.
He cautioned that this "doesn't mean it's going to be easy. I mean, we're not going to go straight up. We'll be very clear there. But the lows of the year are likely in here."
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