BNP Paribas expects US and European equity indices to climb further by the end of the year, with the S&P 500 reaching 8,500 points and the Stoxx 600 hitting 700 points, after a period of short‑term stagnation, and it is focusing on cyclical sectors like banking and automotive.
Sophie Huynh, portfolio manager at BNP Paribas Asset Management, expressed views on the attractiveness of Chinese technology stocks as part of an AI rotation strategy, noting that while US leads in frontier AI models, China is approximately six months behind in development.
Sophie Huynh from BNP Paribas Asset Management warns about potential bubble in AI trade space and discusses token rationing risks, where consumption of tokens may exceed supply. She also comments on Middle East conflict impact on markets.