LIVE MARKETS-Path of least resistance is to the upside

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PATH OF LEAST RESISTANCE IS TO THE UPSIDE

The last week has seen U.S. President Trump reverse his plan for 50% tariffs on the EU, while a U.S. court's decision to block the reciprocal tariffs was put on pause pending an appeal, yet equities have remained relatively stable despite the uncertainty.

The STOXX 600 .STOXX has risen about 1% this week after falling 0.8% the week before.

According to Barclays equity strategists, it shows that investors are reacting more calmly to tariff headlines, viewing them increasingly as negotiation tactics.

From here, Barclays believes that the path of least resistance is to the upside.

"Systematic funds have yet to re-gross, which absent a volatility shock, could help equities grinding higher," they say.

"Meanwhile, sector positioning within the equity market remains defensively tilted, which suggests investors may not be as complacent about the outlook as the high level of indices may suggest."

(Samuel Indyk)

FOR FRIDAY'S OTHER LIVE MARKETS POSTS:

STOXX TICKS HIGHER, CHEMICALS AND REAL ESTATE PROVIDE LIFT CLICK HERE

EUROPE BEFORE THE BELL: FUTURES FLAT BUT STOXX HEADS FOR MONTHLY GAIN CLICK HERE

COURTROOM TWISTS ADD TO TARIFF RISKS CLICK HERE