By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
AmextaFinanceAmextaFinance
  • Home
  • News
  • Banking
  • Credit Cards
  • Loans
  • Mortgage
  • Investing
  • Markets
    • Stocks
    • Commodities
    • Crypto
    • Forex
  • Videos
  • More
    • Finance
    • Dept Management
    • Small Business
Notification Show More
Aa
AmextaFinanceAmextaFinance
Aa
  • Banking
  • Credit Cards
  • Loans
  • Dept Management
  • Mortgage
  • Markets
  • Investing
  • Small Business
  • Videos
  • Home
  • News
  • Banking
  • Credit Cards
  • Loans
  • Mortgage
  • Investing
  • Markets
    • Stocks
    • Commodities
    • Crypto
    • Forex
  • Videos
  • More
    • Finance
    • Dept Management
    • Small Business
Follow US
AmextaFinance > News > US stocks underperform rest of world by widest margin since 1993
News

US stocks underperform rest of world by widest margin since 1993

News Room
Last updated: 2025/04/26 at 11:04 AM
By News Room
Share
4 Min Read
SHARE

Stay informed with free updates

Simply sign up to the US equities myFT Digest — delivered directly to your inbox.

US stocks have underperformed the rest of the world this year by the widest margin in more than three decades as Donald Trump’s erratic policymaking sparks an investor exodus from American assets.

The MSCI USA index — a broad gauge of US equities — lost 11 per cent in the first 16 weeks of the year. The MSCI all world ex-US benchmark climbed 4 per cent in dollar terms over the same period, the biggest gap with Wall Street since 1993, when US investor enthusiasm for foreign stocks surged on the back of trade liberalisation and concerns over the domestic economy.

The gulf in performance underlines investors’ expectation that Trump’s tariff blitz will take a heavier toll on the US economy, by hurting growth and driving up inflation, than it will on economies elsewhere. The gap has been particularly marked with Europe, where US isolationism has prompted pledges of higher government spending — particularly on defence — which are expected to boost the local economy and support equity markets.

“A large part of this underperformance is the repricing of US assets due to increased policy uncertainty and the stagflationary shock from tariffs,” said Sameer Goel, head of emerging markets and Apac research at Deutsche Bank.

The tumbling greenback has helped widen the gap in performance. It has fallen by 8 per cent this year against a basket of six major currencies including the euro and yen, boosting non-US market performance in dollar terms.

Investors started the year betting that US stocks would continue to outshine their peers elsewhere as Trump’s tax cuts buoyed corporate profits. But that view quickly unwound after the US president launched a trade war that was far more aggressive than most investors had anticipated.

The S&P 500 fell as much as 12 per cent in the week following Trump’s “liberation day” tariff announcement on April 2. Although it has since recouped much of those losses as Trump reversed or delayed some of his tariffs, it continues to lag far behind global rivals such as Hong Kong’s Hang Seng or the Stoxx Europe 600.

In Europe, defence stocks such as Germany’s Rheinmetall, Italy’s Leonardo and the UK’s Rolls-Royce have led indices higher, boosted by the region’s plans to increase military spending to cut dependence on the US. Germany’s Dax index is up more than 20 per cent in dollar terms this year while France’s Cac 40 is up around 12 per cent.

“Capital is flowing towards Europe, buoyed by confidence in strong institutions, governance, and equity markets which typically trade at discounts relative to their US counterparts,” said Lewis Grant, senior portfolio manager for global equities at Federated Hermes.

In Asia, the Hang Seng is up 10 per cent this year in dollar terms, led by Chinese tech stocks following the unveiling of AI models by start-up DeepSeek that the company claims were trained at a fraction of the cost and computing power of US rivals such as OpenAI.

Read the full article here

News Room April 26, 2025 April 26, 2025
Share this Article
Facebook Twitter Copy Link Print
Leave a comment Leave a comment

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Finance Weekly Newsletter

Join now for the latest news, tips, and analysis about personal finance, credit cards, dept management, and many more from our experts.
Join Now
Palestinians loot WFP warehouse as widespread hunger deepens Gaza chaos

Unlock the Editor’s Digest for freeRoula Khalaf, Editor of the FT, selects…

Nvidia is a $3tn bet on the tokenisation of everything

Unlock the Editor’s Digest for freeRoula Khalaf, Editor of the FT, selects…

Israel announces expansion of settlements in occupied West Bank

Unlock the Editor’s Digest for freeRoula Khalaf, Editor of the FT, selects…

The bond vigilantes are on the prowl

Stay informed with free updatesSimply sign up to the Sovereign bonds myFT…

Inside the Las Vegas bitcoin party: ‘Whales’, JD Vance and the Trump sons

Donald Trump’s two eldest sons came to America’s gambling capital to call…

- Advertisement -
Ad imageAd image

You Might Also Like

News

Palestinians loot WFP warehouse as widespread hunger deepens Gaza chaos

By News Room
News

Nvidia is a $3tn bet on the tokenisation of everything

By News Room
News

Israel announces expansion of settlements in occupied West Bank

By News Room
News

The bond vigilantes are on the prowl

By News Room
News

Inside the Las Vegas bitcoin party: ‘Whales’, JD Vance and the Trump sons

By News Room
News

Germany’s economy minister urges Brussels to back support plan for heavy industry

By News Room
News

Elon Musk steps down from Trump administration

By News Room
News

Court tariffs bombshell should inspire trading partners to defy Trump

By News Room
Facebook Twitter Pinterest Youtube Instagram
Company
  • Privacy Policy
  • Terms & Conditions
  • Press Release
  • Contact
  • Advertisement
More Info
  • Newsletter
  • Market Data
  • Credit Cards
  • Videos

Sign Up For Free

Subscribe to our newsletter and don't miss out on our programs, webinars and trainings.

I have read and agree to the terms & conditions
Join Community

2023 © Indepta.com. All Rights Reserved.

YOUR EMAIL HAS BEEN CONFIRMED.
THANK YOU!

Welcome Back!

Sign in to your account

Lost your password?