Davy to focus more investment on European markets amid volatility in US

High valuations in US markets leave it 'more vulnerable' to correction, the Irish wealth management firm said

Davy noted that in the first half of the year, the European Stoxx 600 index beat the S&P 500 by the biggest margin this century.

Despite the fallout from US president Donald Trump’s trade war being “much milder” than expected, Irish wealth management firm Davy still plans to “bias away” from US markets as high valuations make it “more vulnerable to correction if the economic picture changes”.

In the firm’s latest Wealth View report for the third quarter of the year, it noted that US equity markets have rebounded from the turbulence caused by Mr Trump’s tariff announcement on April 2 and that Europe has shown strength with markets across the bloc ahead of where they were last year.