European investors reduce their investment in US stocks, or initiate a long-term decoupling trend

Vincent Mortier, Chief Investment Officer of Orient Bank, stated that European investors' demand for risk diversification in the US stock market is accelerating, with the trend starting in April 2025 and further accelerating this week. European investors hold approximately $10.4 trillion in US stocks, accounting for 49% of the total foreign holdings of US stocks. Hugo Ste Marie, a strategist at Scotiabank in Canada, pointed out that Trump's hostility and threats towards the European continent may prompt European investors to reduce their investment in US stocks. Although Europe is unlikely to act in unison to sell US assets, fund managers are increasingly receiving advice on reducing their holdings.