Barclays: Concerns about AI disruption risks are expected to benefit European heavy asset stocks

Glonghui, February 27th｜Barclays Bank strategists stated that as concerns over the disruptive risks of artificial intelligence (AI) intensify, investors are shifting their preference toward heavy assets with lower obsolescence risk. This so-called "HALO trade" is expected to benefit European and UK stock markets. The team led by Emmanuel Cau pointed out that AI-driven market divergence explains the current trend of capital continuously rotating from the US stock market to stock markets in the "rest of the world."