UBS WM underweight equities for first time since eurozone crisis

Shifts positioning amid trade troubles

UBS Wealth Management has moved to an underweight position on global equities for the first time since the 2012 eurozone crisis amid fears of an escalation in the trade dispute between the US and China.

US President Donald Trump announced last week that from 1 October tariffs would rise to 30% from 25% on $250bn of Chinese goods already subject to levies. As a result, the S&P 500 closed 2.6% lower on Friday (23 August), while European markets opened marginally lower on Tuesday morning (27 August). However, stocks have since recovered as it emerged that US-China trade talks looked set to resume. In response to rising concerns over US-China trade relations, UBS WM CIO Mark Haefele said in a note to investors that they "should brace for higher volatility" and "it is prudent to take a...