Amundi: "Shift Asset Allocation from U.S.-Centric to Europe and Emerging Markets"

Global Investment Outlook for the Second Half Announced
Emphasis on Selective Investments by Region and Sector Amid Policy Uncertainty

NH-Amundi Asset Management announced on June 20 that Amundi, its second-largest shareholder and the top asset management company in Europe, released its 'Global Investment Outlook for the Second Half of 2025' on June 17.

Amundi projected that policy uncertainty surrounding U.S. fiscal and trade policies will have a significant impact on the global economy and markets over the next 12 months. The company expects U.S. economic growth to slow due to increased tariffs and weakening demand. In Europe, it analyzed that domestic demand and private credit are likely to recover gradually, driven by factors such as the expansion of trade alliances, interest rate cuts, and euro appreciation.

Amundi recommended a rebalancing of asset allocations from a U.S.-centric position toward a focus on Europe and emerging markets. The company predicted that the trend of investment capital moving from the U.S. market to other regions will continue for the time being. While overall developed market equities are expected to deliver low single-digit returns in the second half of the year, Amundi advised that selective investment strategies centered on stocks benefiting from structural changes?such as European defense and infrastructure sectors, Japanese companies profiting from corporate governance reforms, and Indian stocks related to manufacturing policy themes?are promising.

The company also expressed a positive outlook on European mid-cap stocks, equal-weighted U.S. equity portfolios, and high-dividend Japanese stocks.

Monica Defend, Head of the Amundi Investment Institute, stated, "Although it is a challenging environment for policy forecasting, the resilience of companies, the formation of new investment pathways, and key countries' interest rate cuts will together create new opportunities in the global equity markets." She added, "We are focusing on themes such as increased defense spending in Europe, regulatory easing in the United States, and corporate governance reforms in Japan."