Analyst: US tech stocks under pressure, European stocks relatively resilient
Odaily reports: Alberto Conca, Chief Investment Officer at Swiss wealth management firm LFG+Zest, says the market rally is broadening, and relatively defensive European equities may continue to outperform. Conca made this call before Nvidia's leadership change. The information technology sector accounts for over 35% of the MSCI US Investable Market Index, compared with just 8.8% in the corresponding European index. The European index has broader exposure to financials, healthcare, and energy, with some corporate earnings and better-than-expected economic data also providing a buffer. This protection is relative. Investors note that Europe's lower tech weighting can cushion volatility from a single sector; if the selloff spreads from US tech stocks to the broader Wall Street market, equities in Europe and other regions could also be dragged down. (Jin10)
