LIVE MARKETS-Stay bullish! US equities likely to outperform Europe

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STAY BULLISH! US EQUITIES LIKELY TO OUTPERFORM EUROPE

Deutsche Bank equity strategists have been some of the most optimistic on the street and today's joint China-U.S. trade announcement has the bank turning even more bullish, given the level of tariffs announced.

"Today's announcement even exceeds our constructive expectations," writes Deutsche Bank.

"In our view, this announcement is not only better than we expected but also better than the market would have expected back in March."

The U.S. and China agreed on a 90-day pause on measures and that tariffs would come down by over 100 percentage points to a 10% baseline rate, U.S. Treasury Secretary Scott Bessent said.

Markets have reacted positively. Europe's STOXX 600 is up over 1%, while U.S. futures are surging. S&P futures EScv1 are up 2.8% and Nasdaq futures NQcv1 are up 3.8%.

Looking forward, Deutsche Bank says lower tariffs on China imply lower pressure on sectors most exposed, such as retail and staples.

"Stay bullish and consider stepping back into China tariff-exposed sectors (ex Autos, Health Care and Chips)," DB writes.

"Also, different to our previous expectation, short term, U.S. equities will likely outperform European equities."

(Samuel Indyk)

EARLIER LIVE MARKET POSTS:

US-CHINA DEAL LIFTS MINERS, AUTOS, LUXURY; DRAGS DEFENCE CLICK HERE

BEFORE THE BELL: EUROPEAN FUTURES RALLY, PHARMA DOWN CLICK HERE

THE DEVIL'S IN THE LACK OF DETAIL CLICK HERE